Large pieces of Allegiance Telecom have traded over the last week as the levels for the company's bank debt continue on their upward push into the 92-94 context. Traders pointed to Cobank as the seller of a $20 million piece of Allegiance's bank debt in the 85-86 range toward the end of last week. Dresdner Bank reportedly sold a large piece in the 90 1/2 range this week. The buyers of the paper could not be determined. Officials from Cobank and Dresdner did not return calls. Allegiance is believed to be drawing closer to completing a reorganization plan. An investor relations spokesman declined to comment. Meanwhile, Charter Communications' operating company "B" loan gained almost two points this week with the name changing hands in the 96-1/2 â€" 97 3/4 range. Traders mentioned a market rumor that Charter is looking to complete a second-lien financing package, but one said he did not give the buzz much credence. Others cited the general run-up in the secondary market, particularly in cable names, as the source of the jump. A Charter spokesman could not be reached by press time.
Allegiance Runs-Up Despite Lender Sell-Down, Charter Inches Higher