In a market dominated by telecom activity,Global Crossing was one of the many names that took a hit last week, dropping eight points in two days. The credit sunk from 98 to 90 as about $20 million of the term loan "B" traded. A dealer noted that the credit has historically been strong, but is feeling the weight of an overloaded telecom sector. "It's higher quality leveraged, BB+ rated, but it's just fallen off the cliff as well," he said. Buyers and sellers could not be determined by press time. Bermuda-based Global Crossing is building 12 regional fiber optic networks in Asia, the Americas and Europe.
The company has a $1 billion deal that breaks down into three tranches and expires in 2004. J.P. Morgan, Goldman Sachs, Deutsche Banc Alex. Brown, Citibank, Merrill Lynch and CIBC World Markets are the lead arrangers. Pricing ranges from LIBOR plus 21/ 4% to LIBOR plus 23/ 4%.