An estimated $70 million of Mariner Post Acute Network's bank debt traded between 46 and 47 last week, with dealers continuing to cite a strengthening health care industry as well as an improved distressed market overall. "It's up a couple points; people feel more bullish on the health care sector," said one. Another dealer noted that from a low point two years ago, there was only one direction for the industry to go in. "As with all health care stuff, it had bottomed out," he said. Calls to the Atlanta, Ga.-based company were not returned.
The company's bank debt was trading at 37 in late December (LMW, 12/24), which was high for the name on the heels of a slumping industry. Dealers blamed HMO reimbursements, but have since said with the help of legislation, health care is doing better. J.P. Morgan Chase and Bank of America are the lead arrangers. A spokeswoman at Chase declined to comment. A spokeswoman at B of A did not return calls.