Iridium's bank debt traded up Tuesday on news that Motorola would have to pay J.P. Morgan $300 million to satisfy part of a loan made to Iridium. Dealers reported levels in the 45 range. Bear Stearns was reportedly involved, but that could not be confirmed with officials there. The total volume of trading was estimated to be small, roughly $10-15 million.
A number of asbestos credits have been bid up on news that the litigation cases will be consolidated under one judge, rather than handled separately. Dealers reported W.R. Grace traded up to the high 40s from the mid-40s, while Armstrong World Industries' debt was bid up to the 53 range, up from 50 last week.
In other news, Wyndham International's "B" paper traded up to the 87 range, while the increasing rate loan traded in the 85 range. This is up from prior levels of the low 80s. The company is scheduled to meet with its bank group tomorrow. Enron Corporation's bank debt continues to trade in the 22 range.