GenTek's new debt was trading above par on a when-issued basis in the secondary market last week in front of the company's emergence from bankruptcy. Traders said the company's new five-year, $250 million senior term notes were trading in the 100-1001/4 range. The debt carries a LIBOR plus 41/2% pricing with a LIBOR floor of 11/2%. "I suspect it will trade up from there," said one buysider, referring to investors hunger for paper.
The term note liens are junior to the liens securing the company's exit facility on substantially all of the company's assets and 65% of the stock of GenTek's first-tier foreign subsidiaries. The company's exit facility includes a five-year, $125 million revolver and up to $100 million in letters of credit facilities. A GenTek spokesman said the company is soon to emerge, but could not provide an exact date. He declined to comment on the trades.