The bank debt for bankrupt Exide Technologies ticked up even further this week, rallying from the 84 1/2-85 1/2 range into the 86-87 context. The name jumped out of the 70s last week after the company announced that it had reached a new consensual plan of reorganization with its creditors. Under this plan, lenders are slated to receive about 90% of the equity. It is an interesting play in a cyclical company, said one buysider, noting that under the current plan the company would not emerge with too much leverage.
McLeodUSA continued its run up into the 80-83 1/12 range on what some said were takeover rumors, while others said investors are searching for value. At the beginning of the year, the bank debt was quoted in the low 70s, according to Mark It/LoanX. McLeodUSA is among a host of competitive local exchange carriers that have received extra attention as investors search for discounts in a market that has been severely run up.
Finally, a $15 million piece of the recently restructured Citation Corp. debt was said to have traded this week. The bank debt for the name has been quoted in the high 80s over the last two weeks. Citation, a maker of metal components, reached an agreement with its lenders to restructure the company's debt and equity. The company also received an injection of $20 million from its primary shareholder, Kelso & Company. No more details regarding the financing could be obtained by pres time. Calls to Chuck Bloome, Citation's cfo and v.p. of finance, were not returned by press time.