Asbestos names ran up in the secondary loan market this week as progress was made on approving a $108 million national trust fund to deal with asbestos liabilities. One dealer said that more than $100 million in Owens Corning bank debt traded up into the 71-72 context, from the low 60s, where the bank debt was quoted last week, according to LoanX. In addition, USG Corp. was said to have traded as high as 93 1/2, up about seven points. An Owens Corning spokesman said the company is still working toward a consensual plan of reorganization with its creditors and noted that all parties are watching the process intently in Washington. Richard Fleming, USG's cfo, did not return calls by press time
A $20 million piece of Superior TeleCom is believed to have been auctioned off this week in the 33-35 context. The buyer and seller of the paper could not be determined, but one dealer said the level where the paper was sold was a touch stronger. A trader noted that the bank loan traded in the high 20s roughly about three weeks ago. Superior TeleCom is currently wading through a Chapter 11 proceeding after filing for bankruptcy earlier this year. One market player said there is currently a debate among the different parties as to how the company should be restructured. Calls to David Aldridge, Superior TeleCom's cfo, were not returned by press time.
Wyndham International's bank debt has regained considerable ground since the company reached an agreement with its lenders to extend out the maturity on its revolver and increasing rate loan from June 2004 to April 2006. The company's IRL traded as high as the 91 level and its "B" loan was quoted in the mid 80s. Earlier this month, the IRL was quoted in the 83-84 1/2 range and the market for the "B" loan was 80 1/2 - 81 1/2 (LMW, 6/2). In order to complete the extension of the loans, the company must repay $194 million of its credit facility, explained Judy Hendrick, Wyndham treasurer. Recently, the Dallas-based company completed a $425 million mortgage refinancing with a portion of the proceeds dedicated to repay approximately 65% of the amount required on the loans. The remaining amount of the pay down will be raised through additional asset sales, refinancings and cash flows, noted Hendrick.