Credit Suisse First Boston has restructured its bank loan trading desk by bringing its distressed group onto the private side of its operations under two new heads. Phil DeSantis and Grant Pothast, both managing directors, will now co-head CSFB's distressed bank group. DeSantis was formerly a managing director and trader on the firm's high-yield desk. Pothast has been CSFB's head of loan sales. The duo both report to Don Pollard, managing director and global head of CSFB's syndicated loan group.
Additionally, CSFB has added Joe Friedman as a director to its loan sales team. Friedman joined the firm this week from J.P. Morgan, where he worked as a v.p. in loan sales. Friedman will focus on the firm's institutional loan sales. Pollard confirmed DeSantis' and Pothast's new role as well as Friedman's arrival. A J.P. Morgan spokesman confirmed Friedman's departure.
Wyndham International climbed into the 80s from the mid 70s as the market reacted favorably to the generally positive news coming from the company's earnings statement. The company's "B" loan traded in the 80 context, and its increasing rate loan was said to be trading north of 82. The name has seen some pretty good flow this week, commented one trader. Wyndham has stated that it is currently in the process of refinancing $349 million in pools of mortgage debt due in 2003 and 2004. Calls to Rick Smith, Wyndham cfo, were not returned by press time.
Global Crossing has been trading actively this week in the 20 1/2- 21 context, up about a point from where it had come to rest for the last couple of months. Traders said the news that Hutchison Whampoa's Hutchison Telecommunications has decided to bow out of the bidding for Global Crossing with partner Singapore Technologies Telemedia has propped the bank debt. Singapore Technologies will now fulfill Hutchison's investment pledge. Hong Kong-based Hutchison was said to be getting stiff resistance from the Committee on Foreign Investment in the United States. Singapore Technologies is expected to get a different reception as the sole investor. "It's a world of difference," said an attorney working on the company's bankruptcy case. A Global Crossing spokeswoman declined to comment on the bank debt trades, but said the company believes this was the best decision to clear the path to bankruptcy emergence.