Armstrong Holdings traded up to 36, while a $22 million piece of Owens Corning's revolver traded at 37 last week. The size of the piece of Armstrong Holdings could not be determined by press time. Some dealers said the trades were not specific to the industry, but were on the heels of a better market all around. "Everything in the distressed market is trading up right now," a dealer said. Owens Corning, based in Toledo, Ohio, makes glass containers, labels and beverage containers. Armstrong Holdings, based in Lancaster, Pa., makes interior finishing building materials. A spokesman at Armstrong Holdings declined to comment. A spokesman at Owens Corning did not return calls.
Another dealer said there are people who are willing to invest in these names and wait out any liability surrounding them. "People are realizing it's going to be a long haul," he said. "They just realize there's more supply, and [asbestos liability] is going to take longer to work out. There's volatility to the earnings." He described anyone interested in the paper as "distressed buyers with dedicated capital. They're people who can ride through a cycle."
Armstrong Holdings has a $900 million credit facility which breaks down into two $450 million revolvers. J.P. Morgan Chase leads the deal. Credit Suisse First Boston leads the deal for Owens Corning. A spokeswoman at Chase declined to comment. A spokesman at Credit Suisse First Boston did not return calls.