Dynegy Corporation's bank debt traded down to 85 last week on anticipation of downgrades for several energy companies. The credit had been a par name and was said to be sold off by original holders. The size of the piece could not be determined. NationsRent's debt was quoted into the mid-50s following an announcement early last week that the company had filed for Chapter 11 protection. The company announced on Dec. 17 that it had filed in an effort to restructure its debt and has obtained $55 million of debtor-in-possession financing led by Fleet Bank. An estimated $50 million of Leap Wireless' bank debt has traded in the 76 range this week, which is down from 78.
The par market was virtually at a standstill this week. "I'm researching things for next year," reported one par dealer. The only trade reported was of Nextel Communications' bank debt, moving down to 91 from a recent high of 93 ¾. Dealers attribute the softening to simply technical pressure and nothing fundamental to the credit.