The bank debt of competitive local exchange carriers (CLEC) has been rising as loan investors search to find value in a market where so many names have been bid up, said traders. Some view CLECs as potential sellers of assets, one trader also noted. The bank debt paper for Allegiance Telecom is inching up to the 86-88 context from the 85 range, where the paper traded late last month as the company's reorganization plan shapes up, said market sources.
Meanwhile, McleodUSA has also begun to change hands again over the last couple of weeks. The paper traded in the 57-58 context last week, down slightly from a trade at the 591Ž2 level the week before. But overall, the paper is up from the 50-531Ž2 context where it was quoted at the beginning of September, according to LoanX. McLeod has a $715 million credit facility that was reduced and amended when the company reorganized. "What you have seen is a real focus on efficiency, removing redundancies, and getting our cost structure in place," said a McLeodUSA spokesman. An Allegiance spokesperson declined comment.