Crown Cork & Seal's bank debt traded into the mid-85 range last week, which is a slight uptick in levels. Dealers said the credit traded as low as 81 1/2 recently then notched back up in a series of three trades. An estimated $20-30 million changed hands over the course of the week. Dealers, declining to name specific shops, said most desks are active in the credit. "I'm not sure there's a fundamental issue here. People's opinions on asbestos-related credits are affected by what's happening with other asbestos names," a trader said, adding that Federal Mogul's filing for Chapter 11 was "expected."
Buyers and sellers of the Crown Cork pieces could not be ascertained. The Philadelphia-based company is a worldwide producer of consumer packaging. Timothy Donahue, v.p. finance, did not return calls for comment. A spokesman was unavailable.
Asbestos credits have traded up since early spring due to a growing comfort with asbestos liability. Crown Cork has $2 billion in loans led by J.P. Morgan with co-agents Fleet National Bank and SG.