A $30 million piece of AES Corp. was said to have traded this week as the company struggles to complete a refinancing deal, with a few lenders refusing to sign on. The deal combines a new $1.6 billion loan and an exchange offer of up to $500 million of senior notes due 2002 and 2003 for new securities and cash. The company needs 100% lender approval to complete the deal, but current market buzz suggests that some lenders were holding out for higher pricing. The names of the banks and institutions could not be determined. Calls to AES officials were referred to the lead bank, Citibank. Officials at Citi did not return calls by press time.
A $6-8 million piece of Conseco traded this week at 66, up roughly six points from where the levels had come to rest last month. Traders said the name moved up after a bank meeting with the likelihood that a reorganization plan would successfully be completed. One trader noted that there is more interest in the name with more distressed buyers looking to get in. Repeated calls to Eugene Bullis, cfo, and a company spokesman were not returned by press time.
Charter Communications strengthened this week after the company announced that it was pursuing a plan to streamline its operations. The bank debt had been trading in the 84 1/2 -85 1/2 range, but firmed up to the 85 3/4 - 87 3/4 level after the news. "The news was that they were going to consolidate and cut costs," said one trader, noting that cash flow would likely improve.