ALSTOM's bank debt floated higher again last week with the sentiment that the company was close to determining how to best realign itself going forward. Traders said there were a number of buyers looking for the paper, causing the '06 senior bank debt to inch up from the 85-86 context into the 87-89 1/2 range and the '08 subordinated bank debt to move from the low-to-mid 70s into the 79-80 context.
Emmanuelle Châtelain, an ALSTOM investor relations official, said the company is still looking to receive approval from the European Commission for its financial package. She declined further comment. That decision is expected to come sometime in May or June. One trader also noted that there was a better feeling that the political variables surrounding ALSTOM's restructuring plan would be resolved after Nicolas Sarkozy, the French finance minister, met with Mario Monti, the European Union's competition commissioner, early in the week.
Meanwhile, two week's ago, reports suggested that Siemens, a German electrical engineering and electronics company, would participate in ALSTOM's restructuring. Both companies denied the reports, but the buzz caused ALSTOM's loans to climb (LMW, 5/3). The company also received approval from its bank group to suspend financial covenant obligations until Sept. 30.