Conseco's new bank debt, which will be a part of the recovery package going to lenders, began to trade on a when-issued basis last week in front of the company's emergence from bankruptcy last Thursday. Traders said the loan was changing hands in the 991/2995/8 context. They also said the former credit facility had been quoted as high as the 1041/2 105 context due to its accrued interest, but has ceased to trade. The bankruptcy court confirmed the company's sixth amended joint plan of reorganization last Tuesday, sparking the trades last week. As a part of the reorganization plan, holders of bank debt claims will receive a new $1.3 billion credit facility, comprised of a $1 billion "A" loan and a $300 million "B" piece. Bank of America is the agent on the deal and J.P. Morgan holds the joint-lead arranger and joint book runner role with BofA. A Conseco spokesman declined to comment.
When-Issued Conseco Trades