J.P. Morgan is said to have won General Re - New England Asset Management's mammoth portfolio sale last week with the average price per loans clocking in between the 101 1/4- 101 1/2 range. Credit Suisse First Boston is believed to have come in with the second highest bid for the portfolio, which included about $335 million in loans. The sale was said to include high quality assets such as DaVita, Nalco Co., and Dex Media East, although the exact list of names could not be determined. Calls to officials at Gen Re were not returned. Officials at the two banks declined comment. The loans are believed to have been assets held by the firm's KZH-Pondview CLO (LMW, 2/9).
Reliant Resources' bank loan was a touch weaker as market players in both the bank loan and bond markets pursued relative-value plays. The paper was said to have been trading in the 97 1/2-98 1/2 range down from recent highs in the 98 1/4-99 context. Traders said investors were looking to the company's bonds, which have a longer tenor and currently carry a better yield. One dealer noted that the price for Reliant bonds also recently softened as investors sold out of the paper in order to take advantage of AES Corp.'s offering of $500 million of unsecured senior notes. Calls to Dennis Barber, Reliant's director of investor relations, were not returned by press time.
Meanwhile, paper under the Adelphia Communications Corp. umbrella has been trading as banks and bargain hunters choose to cash out as the price for the paper inches toward par. One dealer noted that more than $80 million of the paper has changed hands over the last week. The Century Cable "old" term loan is quoted in the 97 1/2-98 1/2 range this week. Sellers are leaving about two points on the table, but they will not be exposed to any future downside, said one trader. Adelphia is still wading through its bankruptcy process. A plan of reorganization is expected before the end of the first quarter. Calls to Adelphia officials were referred to a spokesman who did not return calls by press time.