IMC Global's debt is being bid at 100 on the sale of the company's chemical unit in early November. When IMC sold Penrice Soda Products, the Australian unit of its soda ash and boron chemicals business, the company raised $43 million. According to company officials, the money raised will be used to pay down debt. Calls to Reid Porter, executive v.p. and cfo, were referred to Dave Prichard, spokesman for investor relations. He declined to comment on trading levels, but said, "IMC is continuing to make progress on non-core asset sales, including the Penrice deal and pending sale of our salt business," which will bring in $600 million in cash. "Since we did bank refinancing last May, we've made considerable progress," he added.
Dealers say since IMC's deal is relatively new and in a strong industry, the bank debt levels were high trading out of the box. "Guys with a small exposure will want to sell it, and guys with large exposure will want to add it to their books," a dealer explained, referring to the trouble involved in managing small pieces. "The credit is actually trading high to where it's rated."