Owens Corning bank debt has been sparking the market over the last week with more than $70 million in trades. The paper traded into the 70s, but bids had retreated to the high 60s when LMW went to press. The bank debt surged from the mid-60s as the market digested information regarding the discussion of asbestos liability limitations.
Last month, Owens Corning's bank debt was softer after the company filed its reorganization plan. Traders explained that asbestos liabilities were larger than expected and a few investors were looking to unload. At that time, the bank debt traded in the 63 1/2 to 64 1/4 range. A disclosure statement is set to be filed on Feb. 28, but there is no current date for emergence from Chapter 11 (LMW, 1/27). Officials from Owens Corning could not be reached by press time.