A $20-30 million chunk of Genesis Health Venture's bank debt traded around 72 this week. Levels are up slightly from the high 60s, and dealers are eyeing the credit as the company is in the process of emerging from Chapter 11 bankruptcy. TD Securities was the rumored seller, although officials there did not return calls for comment. Genesis, based in Kennett Square, Penn., owns and operates 300 geriatric care facilities. Calls to a company spokeswoman were not returned by press time.
Dealers say health care is one of the stronger sectors right now, especially when compared to the spiraling telecom industry. Along with Genesis Health, Integrated Healthcare's bank debt is also rebounding. Integrated's debt traded in the 56-58 range last week, after lingering for several weeks in the mid-40s. Genesis has a $1.078 billion deal that breaks down into four tranches and expires in 2005. Mellon Bank, Citibank, First Union National Bank are the lead arrangers. Pricing ranges from LIBOR plus 21/ 2% to LIBOR plus 3%.