A Japanese bank sold an $11 million pro rata piece of Safety-Kleen's bank debt last Wednesday in an auction at 42 1/2, down slightly from 43-45 the week before. Sumitomo Mitsui Banking reportedly sold the pro rata piece and Deutsche Banc Alex. Brown was rumored to be the buyer, but officials at both banks declined to comment. Dealers say there's still a lot of uncertainty about the company, noting that financial statements are about to be delivered to the banks in a meeting later this month. "A bank meeting is coming up, and people may be taking a positive view from the events coming up," a trader said. Another noted that the company, "hasn't gotten its arms around the problems yet." Details on the upcoming meeting could not be determined.
Calls to Larry Singleton, cfo, were returned by a spokesman. "The company is in Chapter 11, and we're working on restatements. Until those issues are settled, anything anybody says is speculation," he said, declining to comment on the nature of an anticipated bank meeting. "We meet with creditors, lenders, bankers every day, so it's just part of the process. We've been in normal operations since we went into Chapter 11."
The Columbia, S.C.-based industrial waste hauler's levels dropped to 98 from 100 1/2 last spring, with dealers blaming problems on the waste hauling industry (LMW, 3/6). The company has a $1.610 billion deal that expires in 2007 and breaks down into five tranches. Pricing ranges from LIBOR plus 2 1/2 % to LIBOR plus 3%. J.P. Morgan, and CIBC World Markets are the lead arrangers.