Wyndham International's bank debt levels fell dramatically after the company pulled its downsized bond deal. Traders quoted the name's increasing rate loan in the 91-94 level down from 95-98 range and the "B" term loan at the 90-93 level from a 93 trade earlier this week. No trades could be confirmed. Investors are trying to evaluate the company's next step. Calls to the company were not returned, but the company released a statement saying that it "found the market conditions not deep enough to issue the notes on terms that made sense to the company and its shareholders."
Adelphia Communications took a hit from reports that said the company may have inflated subscriber numbers. Traders said the day opened up with a Street bid for the Century Cable facility in the mid-60s although, it later traded at 83 1/2 and recovered to the 85 level mid-day. There is a lack of confidence in the name and investors are unsure of what to believe, said one trader. Karen Chrosniak, the company spokeswoman, declined to comment.
Bids for XO Communications backed up into the mid 40s on reports that Forstmann Little & Co. and Telefonos de Mexico wanted out of their purchase agreement for the troubled telecom. No trades could be confirmed. Todd Wolfenbarger, company spokesman, explained that the letter was only a request to mutually terminate the agreement. "We don't think that any of the conditions will be met to terminate the agreement," he noted, adding that the agreement is still in full force and effect. The company is also working with a consortium of banks for a standalone plan. J.P. Morgan and TD Securities led its previous facility, Wolfenbarger noted, but declined to comment on which banks the company was working with now.