Level 3 Communications' bank debt received a boost this week from the news that the company has signed a definitive agreement to acquire all the assets of bankrupt Genuity. Traders said that the bank debt rose to the 72 range up from the mid-to-high 60s. In mid-July, the company received approximately $500 million in new capital from Longleaf Partners Funds, Berkshire Hathaway and Legg Mason. At the time, there was speculation that Level 3 would be in position to begin consolidation in the telecom sector. Questions for Sureel Choksi, Level 3's cfo, were referred to a spokesperson, who did not return calls.
Asbestos-related names W.R. Grace and Federal Mogul jumped after Sealed Air Corp. reached a settlement on asbestos claims in connection with a 1998 transaction in which Sealed Air acquired the Cryovac packaging business from W.R. Grace. Traders said $10-15 million pieces of W.R. Grace changed hands in the mid-60s. Federal Mogul, meanwhile, traded at 64, up from the high 50s where it had been moving earlier this month.
Wyndham International's term loan "B" traded in the 79 context before changing hands slightly above 80, noted market players. One dealer suggested that the company was receiving a boost from expectations that as the economy recovers, Wyndham will do better. "But is the economy improving?" another dealer questioned, pointing out the company's weak cash flow. Calls to Richard Smith, Wyndham cfo, were referred to a spokesman, who did not return them.
Finally, R.H. Donnelley's new credit that backs the company's acquisition of Sprint's publishing assets broke into the secondary market on Wednesday trading above par. The oversubscribed "B" paper changed hands in the 100 1/4 to 100 1/2 context as original lenders looked to increase their allocations.