Owens Corning's bank debt was a few points lower this week after the company filed its plan of reorganization and a couple of lenders were looking to unload the name. A $20 million piece was believed to have changed hands around the 63 1/2 level, but the trade could not be confirmed. Market players said the name was softer after the company filed its reorganization plan because asbestos liabilities were larger than expected. The reorganization plan provided for $16 billion in asbestos liabilities, a company spokesman said. He also noted that proposed allowance to asbestos liabilities outstripped the value of the bank and bond debt and reduced the overall estate. A disclosure statement is set to be filed on Feb. 28, but there is no current date for emergence from Chapter 11.
Casella Waste Systems broke into the secondary market this week with traders quoting the paper in the 100 3/8 to 100 3/4 range. Small pieces changed hands in that context. Dealers said that investors liked the name because it adds diversity to portfolios that already hold the company's industry competitor, Allied Waste Industries. One dealer compared the two company's noting that Casella Waste was a lot less levered and also a lot less cyclical than Allied Waste because of its focus on the residential market rather than the industrial market.
American Tower Corp.'s bank debt was one to two points stronger this week as the company announced that it would pursue $400 million in new financing. Proceeds from the financing will be used to pay down $200 million of the company's term loans as well as repay $200 million outstanding on its revolver. The funds would be raised through an issue of subordinated notes and warrants to purchase shares of Class A common stock in the company. Dealers and buysiders quoted the market for the company's "B" loan in the 94 3/4 to 95 3/4 range and a small piece is believed to have changed hands in the 95 context. Some expressed doubts over whether the high-yield market would have the appetite for the paper, but others were certain that the sub notes would be priced. Calls to Bradley Singer, American Tower cfo, were referred to a spokeswoman, who did not return calls seeking comment.