Global Crossing's bank debt has been inching higher since the company received regulatory approval to consummate its acquisition by Singapore Technologies Telemedia. Traders said the bank debt has been trading as high as the 24 1/2 range after moving in the 21 3/4-23 1/2 range for the last couple of months. A portion of the recovery plan is equity, which has contributed to the rise in the price of the bank debt. "A lot of these emerging equities are being valued and we are watching the whole market trade up," said one dealer. Considering where the bonds are trading, and that bondholders are also receiving equity in their recovery package, the bank debt is worth 25 cents on the dollar or higher, dealers explained.
Global Crossing's request to transfer control to ST Telemedia was approved by the Federal Communications Commission last week. The company received its long awaited approval from the Committee for Foreign Investment in the U.S. on Sept. 19. A Global Crossing spokeswoman could not comment by press time.
Meanwhile, the bank debt of Edison Mission Midwest Holdings has broken through the 90s glass ceiling and is now believed to be trading in the 90-92 range. Market players speculate that the company will have to soon present a plan to deal with $911 million in bank debt coming due in December. No concrete details for a plan could be obtained. A company spokesman could not comment by press time.
Meanwhile Karen Klapper has joined Prudential Fixed Income's leveraged loan bank loan group as a v.p. in its credit research unit. Klapper was v.p. of the investment and corporate banking group at BMO Nesbitt Burns, where she was responsible for managing a sizeable loan portfolio concentrated with media and communications companies. Clapper will cover media, healthcare and general industrial sectors.