The euro-denominated tranches of Jefferson Smurfit Group's credit facility have been trading higher as the company pursues an asset securitization that will generate proceeds targeted to pay down the company's bank loans, said loan traders. The "A" piece was quoted in the 983/4-99 range and the "B/C" tranches were said to be trading in the 993/4-1003/8 range, although one trader noted that nobody would buy the paper over par due to the expected payback. No more details regarding the securitization could be obtained by press time. But the trader said, "It's a pretty big ticket--a couple hundred million." Calls to Ian Curley, cfo at Jefferson Smurfit, were not returned by press time.
Jefferson Smurfit Rallies With Potential Payback