Investors are fretting over WorldCom as $20 million of its $3.75 billion, multi-year revolver traded in the 93 context. Traders said that $10 million of the name failed to auction in the 97 range earlier on Wednesday. The $2.65 billion, 364-day facility with term-out option was bid in the 60-70s range, although no trades were reported. Both revolvers are unfunded, but market players drove down the bids with the speculation that the company might term-out its 364-day facility. Calls to Scott Sullivan, company cfo, were referred to a spokesperson who did not return calls by press time.
About $20 million of Adelphia Communications' older Century Cable term loan was rumored to have traded in the high 80's, although most dealers quoted the name in the 90-92 context. A large piece of Adelphia's Hilton Head facility was also believed to have changed hands in the 86 context. Investors are beginning to trade some of the company's more off-the-run facilities as they gamble on the value of the company's cable assets. Repeated calls to Karen Chrosniak, company spokeswoman, were not returned by press time.