AT&T Corp.'s new corporate revolver has seen a lot of action after breaking into the secondary markets this week. Traders said the paper initially was moving in the 93 1/2 - 94 1/2 context but had firmed up to the 94 7/8 - 95 7/8 range by midweek. Pieces of the $4 billion loan were rumored to have traded between 94 and 97 in the grey market a couple of weeks ago (LMW, 9/23). The credit was largely completed via four major banks - Citigroup, Credit Suisse First Boston, Goldman Sachs and J.P. Morgan - that each picked up approximately $550 million of the name. Calls to Thomas Horton, cfo, were not returned by press time.
AES Corp. also has been active with its revolver changing hands in the 84-87 range, up from the low 80s. The recent activity in the name comes after the company announced that it would complete a new $1.6 billion credit facility. The new credit is earmarked to refinance the company's existing $850 million revolver maturing in 2003, the $425 million term loan due in August 2003 and the $263 million term loan for subsidiary AES EDC Funding II. The new credit, however, still needs 100% lender approval. Calls to Barry Sharp, cfo, were referred to a spokesperson, who did not return calls by press time.
Meanwhile, levels for Venture Holdings' bank debt paper have been sinking since the company announced that the German courts had commenced insolvency proceedings against its German subsidiary Peguform. But the paper slipped further-into the mid-60s-this week after Moody's Investors Service downgraded the company's credit facility to Caa1 from B2. Due to the insolvency proceedings, the company is now in default under its U.S. credit facility, according to Moody's report. Calls to Michael Alexander, cfo, were not returned by press time.