A $16 million piece of Russell-Stanley Holdings bank debt is said to have traded last week. The exact levels where the trade was completed could not be determined, but investors said the bank debt was quoted in the 68-72 range toward the end of last week. Earlier in the week, the name was quoted in the 75-80 context, according to one buysider, who added that this was likely due to a stale axe.
Russell-Stanley, a manufacturer of plastic drums and other industrial containers, completed an out-of-court restructuring in 2001 after a weak economy and the events of Sept. 11 2001, hurt demand for its industrial container products. The restructuring included the exchange of $150 million in 10 7/8% senior subordinated notes for all of the equity in the reorganized company, according to company statements. These noteholders also received $20 million of new 9% senior subordinated notes due 2008. The company had almost $74 million of bank debt outstanding as of June 30, 2001, according to its last publicly disclosed 10-Q that was filed in August 2001.
The amount of bank debt outstanding could not be determined, but market participants said it is not a large facility. Ronald Litchkowski, Russell-Stanley's cfo, did not return calls.