Approximately $25-35 million of Tyco International February 2003 bank debt was auctioned in the 94-95 range on today, although some said the market for the name was more accurately represented at the 93-94 level. Market players said the name was moving because investors are anticipating troubled waters ahead and wanted to lower their exposure to the company's paper. The bank debt has fallen from the 94 1/2 to 96 1/2 level where traders had quoted it last week.
Roughly about $30 million was said to have traded in the 95 range before sinking to the 93-94 context on news of ex-CEO Dennis Kozlowski's indictment for tax evasion. Traders said the name moved at 92 and 94 on Wednesday. Market players had mixed feelings about the scandal. Some say it had nothing to do with the company and that it was purely a personal matter of the former ceo, and others are worrying that the creditability issues could extend to the company as well. Reports suggest the Kozlowski may have miss used company funds for personal reasons as well. Mark Swartz, company executive v.p. and cfo, and the company spokesman were not returned by press time.