The market for Centennial Communications Corp.'s "B/C" loan dropped as low as 86-89 context after information suggested that Welsh, Carson, Anderson & Stowe might not provide the company with additional financing, according to market players. Trades were said to have been completed at the 89 level. But later on Monday, the company announced that it would be pursuing a $250 million private placement note issuance with the proceeds for the offering tagged to retire of portion of the company's exiting bank debt. Thomas Fitzpatrick, Centennial's cfo, said the company's financial advisors suggested the timing was right to tap the high-yield markets. He declined to comment on the identities of the advisors and the lead book runner for the offering, and he could not be reached for follow-up comment on whether Welsh, Carson was providing additional funding. Partners at the deal sponsor firm did not comment late Wednesday. Bank of East Asia was not able to find an acceptable bid for an $11 million piece of The Goodyear Tire & Rubber Co.'s U.S. term loan, leading to a failed auction. The bank was rumored to be looking for 95-96 for the piece. The market for the paper has been ticking up from the low 90s. By Wednesday, traders quoted the loan in the 95 context. "I don't know who the heck will be willing to buy it," said one buysider, noting that "there's a lot of wood to chop." Officials at Bank of East Asia could not be reached.
A $10 million block of Exide Technologies' bank debt traded up roughly two to three points this week in the 59-60 range. Recent reports indicate that the company is working toward securing exit financing. The battery maker filed for bankruptcy last April. Calls to
Biagio Vignolo, executive v.p. and cfo, were not returned.
Mirant Corp. bank debt continues to come under pressure as the company's restructuring plan becomes the subject of creditor wrangling. A $5 million piece of the $1.125 billion revolver maturing in July was believed to have traded in the 62 range, down from the high 60s to 70 range, where the paper was traded last week. Calls to a company spokesman were not returned.