The bank debt for Jefferson Smurfit Group, the European-based manufacturer of containerboard, corrugated containers and other paper-based packaging products, has been stronger as market players look for improvements in the packaging and paper sector. Market players are betting on a cyclical play, said one trader. The euro denominated "B" and "C" loans have been trading in the high 98s with the "B" quoted in the 981/4-983/4 range and the "C" loan quoted around the 985/8 context. One trader said the pro rata traded as low as 961/2 and the "B/C" tranches were at one point trading at the 98 level.
JSG has E1.7 billion in term loans and a revolving credit facility with up to E425 million in availability. The term loans are denominated in U.S. dollars and euros. As of mid 2003, JSG had about E547 million outstanding on its "A" piece and roughly E469 million on each of its "B" and "C" tranches. Ian Curley, cfo at JSG, was out of the office and could not be reached by press time.