Xerox's bank debt moved briskly in the secondary markets last week, with levels on all tranches dipping about one point earlier in the week before recovering by mid-week. Traders quoted the company's "B" tranche in the 92-94 range, the "C" loan at the 97 1/2 98 1/2 level and the revolver in the 76-78 context.
Market players said the name came back up as investors got more comfortable with the company's most recent restatement news. Rumors circulated around the market that PNC Bank was selling out of its position in the name, but the bank's involvement could not be confirmed. A spokesman for PNC declined to comment on the possibility of the trades.
Levels are still depressed from the range where they were trading when the recently renegotiated bank line broke syndication last month. At that time, traders said the revolver was moving in the 86-88 range, the "A" term loan in the 89-91 context, the "B" term loan in the 98-99 range and the "C" term loan at the 98-98 1/2 level (LMW, 7/1). Lawrence Zimmerman, cfo of Xerox, could not be reached by press time.