Sun Healthcare's bank debt proved it also rises early last week, when the debt notched up to the 281/ 2 range after lagging in the low 20s for months. Traders couldn't pinpoint the exact reason behind the debt breaking through, but noted it was one of the credit's hardest hit by the health care slump. It was also among the slowest to recover when the market improved. Calls to the company were not returned by press time.
Deutsche Bank was rumored to be the buyer, but officials there would not comment. The seller could not be determined by press time. The exact size of the piece could not be determined, but was reportedly small. "It was trading in the 22-24 range forever," said a dealer. "It was stagnant and had not participated in the run-up of health care credits. People were concerned with management, and the company wasn't performing as well."
The company has a $1.2 billion credit that expires in 2005. Bank of America leads the deal. The Alburquerque, N.M., company provides long-term, subacute, related health through 550 facilities in Australia, German, Spain, the U.K. and the U.S. It also owns pharmacies serving company-operated and nonaffiliated facilities throughout the country.