Rumors flooded the market last week that Ispat Inland, a subsidiary of the Netherlands-based Ispat International, will look to complete a bond deal sending its already rocketing bank debt up into the 961/2-971/2 range. One dealer estimated that at least $100 million of the paper changed hands last week. The new bonds could be slated to pay down the bank debt or just provide a liquidity cushion, he added. Credit Suisse First Boston is the agent on the bank debt, but which firms will lead any bond deal could not be determined. Calls to Tom McCue, treasurer of Ispat Inland, were not returned by press time.
Ispat Inland's bank debt has been inching higher since the end of last year. In mid-November, the paper traded up from the low 70s into the 77-79 range as the company was able to remove some uncertainty surrounding the credit by finishing an upgrade to one of its blast furnaces (LMW, 11/17). The bank debt paper has risen close to 10 points since the beginning of this year, according to Mark It/LoanX.