Levels for XO Communications' bank debt have shot up thanks to an amended tender offer by Carl Icahn'sHigh River partnership. The amended tender offers a price of 70 for XO's senior secured bank debt and the current market for the name has followed, although dealers maintain that no one was trading the paper.Carl Icahn could not be reached by press time.
Certain conditions must be met for the sale to be completed. First, a minimum of $331 million in principle amount needed to be tendered by last Friday at 5 p.m. Secondly, the bank holders must be entitled to choose five members of the board of directors for the reorganized company under XO's third amended plan of reorganization. If the tender is completed, High River will own more than 50% of the senior secured loans and therefore be in position to choose the five directors.
The original tender was offered on July 10 at a price of 40 for the senior secured bank debt. At that time, dealers said the bank holders were holding tight to their positions in hopes of better returns (LMW, 7/15).