Approximately $48 million of Safety-Kleen's bank debt traded last week, culminating with an $18 million auction of the pro rata piece in the 44-45 range. Traders said the name was moving on the belief that a lawsuit against the company will soon settle in Safety-Kleen's favor. UBS Warburg is rumored to have traded a total of $30 million of the name in the 40s range earlier in the week, although no one at the bank could be reached for comment. John Kyte, Safety-Kleen's spokesman, said he could not comment on the pending litigation, but added, "Our position is that the case has no merit."
Two weeks ago the bank debt levels rose as $30 million climbed from 32-33 to 36 following a U.S. Bankruptcy Court approval of the bidding and auction process for the sale of its Chemical Services Division.