The market buzzed with talk of a $50 million trade of Global Crossing's bank debt in the 15 context last week. Bear Stearns is believed to be one of the major participants in the trade. Officials at Bear Stearns could not be reached by press time.
The paper appears to have traded flat after Global Crossing 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.
Market players were disappointed after Global Crossing decided to accept the bid from Hutchison Whampoa and Singapore Technologies Telemedia for an investment of $250 million in exchange for a 61.5% majority interest in the reorganized company. By comparison, the company's banks and creditors, which hold roughly $12 billion in debt, will receive a 38.5% stake, $300 million in cash and $200 million of new debt in the form of senior notes. The company's bank debt was quoted in the 15-17 range at that time (LMW, 8/11).