ALSTOM's bank debt has been actively trading, moving higher in the secondary loan market as the company shows signs of improvement after completing a balance sheet overhaul. Pieces of the company's '06 senior bank debt were trading around the 82 range and the company's '08 subordinated loans were said to be in the low 70s.
European market sources said the bank debt got a boost after ALSTOM won a contract to supply Société Nationale des Chemins de Fer, the French national railway company, diesel locomotives. ALSTOM's share of the contract is about E489 million. The company is also rumored to be in the running to win another deal with a Chinese company, noted one loan source. Moreover, the company recently paid down bonds that it had coming due this year. ALSTOM is headquartered in France and specializes in energy and transport infrastructure. Corporate officials could not be reached by press time.