Energy names such as Enron and El Paso Energy have sparked the secondary market this week with big chunks of each name changing hands. A $20 million piece of Enron was auctioned by Societe Generale at the 13 1/2 level, as recent reports indicated that the company's former CFO, Andrew Fastow, would be indicted as early as next week. Calls to Enron and SocGen were not returned by press time.
In addition, a $10 million piece of El Paso traded at the 75 level after the Federal Energy Regulatory Commission disclosed that the company's pipeline subsidiary withheld capacity from California during the state's 2000/2001 energy crisis. The fate of the syndication of a new institutional piece for the company is now in question. Calls to Brent Austin, cfo, were referred to a spokesman, who did not return calls by press time.
Meanwhile, Allied Waste Industries' bank debt levels fell about a point to the 97-98 range after the company pulled a proposed $250 million note offering. Proceeds from the sale had been earmarked to pay down the company's term loans. Traders said the bank debt was not drastically affected because the paydown was not urgent. Calls to the company were not returned by press time.
Finally, Wyndham International's increasing-rate loan firmed up to the 83-86 range from the 81-83 context after the company announced that it would sell 13 of its properties for $447 million. Proceeds from the sale are designated to pay down debt, but traders said that it was still unclear how much would go towards bank debt. Calls to Richard Smith, cfo, were referred to a spokesman, who did not return calls by press time.