Levels for Xerox's bank debt fell off significantly last week following the disclosure that the company would have to restate its revenues beyond the originally announced restatement. "Everyone knew that there was going to be some kind of an adjustment, but not to this degree," said one dealer.
The levels for the bank debt were quoted with the market for the revolver in the 77-83 range, the "A" term loan at the 81-83 level, the "B" term loan in the 93-95 range and the "C" term loan in the 96-98 context. These levels are off roughly two to nine points from the previous week, with the pro-rata tranches suffering the largest hit.
There were shadows of trades in all of the tranches last week, and one shop was believed to have traded roughly $40 million of the paper. But those trades could not be confirmed. Calls to Lawrence Zimmerman, cfo of Xerox, were referred to a spokeswoman, who did not return calls by press time.