Calpine's bank debt moved up a couple of points, trading as high as 91-92, after the company announced that restructured agreements with its turbine manufacturers would allow it to avoid $3.4 billion in future capital expenditure commitments. While the company will not receive any cash back from the cancellation of the contracts, it does have credits with the manufacturers if it decides to move forward with turbine production at a later date, a company spokeswoman explained. Calls to Michael Thomas, senior v.p. of treasury, were referred to the spokeswoman.
Meanwhile, Wyndham International's bank debt has been softer the past couple of weeks, with the "B" piece quoted in the 77 1/2 -79 context and the IRL quoted in the 80 1/2 - 82 1/4 range, according to LoanX. The hotel company is in the process of amending its bank facility so that the maturity of its revolver and increasing-rate loan, both set to expire in June 2004, align with that of its "B" term loan, which expires in June 2006. Dealers and buysiders believe that the amendment in its current form does not offer any incentive for those holding the IRL paper. Unless the IRL holders commit some "selfless acts of cooperation," the company is going to have a tough time getting the deal done, one dealer said. Calls to Rick Smith, cfo of Wyndham, were referred to a spokesman, who declined to comment.
Lastly, OM Group's bank debt has ticked up in price since the company released its earnings statement last week. Dealers said the paper traded as high as 97-97 1/2, up from the mid-90s last week, but no trades could be confirmed this week. There were no major surprises on the earnings call, one buysider noted. In addition, market players believe that the company may look to do some asset sales, and that sentiment also is contributing to the boost. Calls to Thomas Miklich, cfo, were not returned by press time.