Approximately $25-35 million of Tyco International's February 2003 bank debt was auctioned in the 94-95 range last Thursday, 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 - 96 1/2 level, where traders had quoted it last week.
Roughly $30 million was said to have traded in the 95 range before sinking to the 93-94 level 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, while others are worrying that the creditability issues could extend to the company as well. Reports suggest that Kozlowski may have misused company funds for personal reasons as well. Brad McGee, company spokesman, would not comment on the trades but added, "The events of the last week will have no impact on the company's operations."