Traders said that loan trading was sparse this week as investors nervously watched the volatility in the equity market. Names in the news, however, did see some significant changes in their levels. Williams Communications Group, for example, rocketed from the 72-74 well into the 80s after Level 3 Communications was reported to be making a $1.1 billion bid for the company. This offer would take the Williams Communications bank debt out at par. Level 3 bank debt also received a boost this week with levels rising from the 68-70 context to the mid 70s. No trades of either name could be determined.
Adelphia Communications bank debt fell roughly three to five points as the company's two former company executives, John Rigas and Timothy Rigas, were reportedly arrested by U.S. postal inspectors for conspiracy to commit securities fraud. Dealers quoted the Century Communications facility in the 68-71 level. Others said that the bank debt was feeling pressure from lower cable subscriptions. Charter Communications also was said to have traded down from the low 90s into the 86-88 range. Market players said the name was off because of lower than expected subscriptions Calls to the companies were not returned by press time.