A $22.4 million piece of Owens-Corning's bank debt was auctioned off between 51 and 52 early last week, as selling pressure pushed the paper down a few points. The buyer and seller couldn't be determined by press time. While one dealer said the credit was higher relative to where other paper has been trading, another was surprised at the levels. "This thing had been in the 30s, so it sounds like a decent bump up to me," he said, attributing overall higher levels to more distressed buyers coming into the market. "People have struggled to put a box around liability, and they're getting comfortable with the underlying business." Owens-Corning, based in Toledo, Ohio, is one of the world's largest fiberglass manufacturers.
Last month Owens-Corning's bank debt jumped to 56 from 42 over the course of a week. One dealer said interest in the name is up as the asbestos litigation process is rumored to clear sooner than expected. Credit Suisse First Boston leads the deal for Owens-Corning.