A week after Dade Behring announced a bankruptcy reorganization plan, its debt traded heavily on speculation that holders are well-positioned. Approximately $23 million changed hands early in the week, but levels remained stable around 80. "People are starting to see a little more value in the name and feel there could be some sort of take out or positive event," a dealer remarked. Specifics on the restructuring could not be ascertained, but a few dealers speculated that a debt for equity swap was helping push the debt. They said if banks got equity, that would put them in a better position as the company reorganized and pulled out of Chapter 11.
Two weeks ago a company spokeswoman confirmed that Dade Behring was pursuing a restructuring plan, but she declined to give details (LMW, 7/23). Dade Behring has a $1.25 billion deal that breaks down into five tranches and expires in 2007. Deutsche Banc Alex. Brown, Morgan Stanley, Goldman Sachs, and Credit Suisse First Boston are the lead arrangers. Pricing is 312.50 basis points over LIBOR.