The bank debt of Qwest Communications International was believed to have traded around the 88 1/2 level this week after reportedly receiving relief from one of its covenants. The company's debt-to-EBITDA ratio was scheduled to drop from 4.25 times to four times at the end of the year, but an amendment increased the allowable leverage ratio to six times for the life of the loan.
Qwest's bank debt was last seen rising from the 58-62 range into the low 80s after the company announced the sale of its directories business, known as QwestDex. A spokesman declined to comment on the trade, but he noted that the company was pleased with the sale of QwestDex, which provides the parent with an additional $750 million in liquidity at the subsidiary level until the sale is completed.
Separately, the market buzzed with a rumored trade of $50 million of Global Crossing's bank debt in the 15 context. The paper appears to have traded flat after the company announced its financial results for July, including a consolidated net loss of $145 million. A spokeswoman said the company is continuing to meet its operating goals, but she declined to comment on the trade.