WestPoint Stevens' bank debt slumped in the secondary market following the company's second quarter earnings results. The bank debt was quoted in the high 90s, but slipped to the low 90s, one trader noted. No trades could be confirmed. WestPoint has roughly $490 million outstanding on its senior credit facility, according to company filings. Bank of America is the agent for the loan. Although WestPoint filed for bankruptcy earlier this summer, the bank debt held its ground because the company's current restructuring proposal calls for the senior credit facility to be replaced by an exit bank credit facility.
WestPoint also has a $165 million second-lien facility with Deutsche Bank as the administrative agent. This facility is expected to be repaid with proceeds from the exercise of rights given to holders of WestPoint's senior notes. ESL Investments, GSC Partners and Perry Capital owned more than 51% of the company's notes at the time WestPoint filed for bankruptcy. Calls to Lorraine Miller, senior v.p. of investor relations for WestPoint, were not returned by press time.