Calpine gets modest boost; WestPoint Stevens, Revlon still climbing

By Carlise Newman

Chicago, Nov. 17 - Calpine Corp. debt got a temperate boost Monday in the first session in several days not completely immersed in earnings news - although the recent announcements continued to influence much of the trading activity.

Calpine's 8½% notes due 2011 were quoted at 73 bid, 74 offered, while its 8½% notes due 2008 were 73½ bid, 74½ offered, both up ¾ of a point.

On Monday Calpine received funding on its $650 million 4¾% senior unsecured convertible notes due 2023 including exercise of $50 million of the greenshoe.

Net proceeds will be used to repurchase existing indebtedness.

Meanwhile WestPoint Stevens Inc.'s debt again rose moderately after the company reported a narrower loss for the third quarter on Friday.

Net income for the third quarter of 2003 was a loss of $12.8 million, or $0.26 per share, compared with a net loss of $16.6 million, or $0.33 per share in 2002.

Loss before taxes for the third quarter of 2003 was $16 million compared with a loss before taxes in 2002 of $25.9 million. Included in the third quarter of 2003 were $8.7 million in expenses related to the company's restructuring, and $12.7 million in expenses related to the bankruptcy proceedings, compared with $16.1 million in expenses in the third quarter of 2002 related to WestPoint Stevens' restructuring.

WestPoint Stevens' 7 7/8% notes due 2008 were up 1 point to 14½ bid, 15 offered, according to a trader. They had fallen nearly 2 points last week.

WestPoint, a West Point, Ga.-based home fashions manufacturer, said its net sales for the third quarter of 2003 decreased 3% to $445.2 million compared with $460.5 million a year ago.

"Earnings were still on the minds of everyone Monday because there wasn't a lot else to focus on," one trader said.

Meanwhile Revlon Inc. bonds moved up for a second day after the company said that Ron Perelman's MacAndrews & Forbes Holdings Inc. has agreed to provide up to $100 million to Revlon in 2004, to enable the company to continue to execute its plan.

MacAndrews & Forbes also agreed to provide $25 million that can be made immediately available to Revlon.

Revlon's 8½% notes due 2006 were up 1 point to 69 bid. The 8 5/8% notes due 2008 were also up 1 point to 56 bid, according to a trader. On Friday, after the news cash injection was announced, both issues added 2 points.

The bonds had risen a modest ½ point Thursday but earlier in the week were up as much as 4 points.

"There were rumors last week that something big was going on, and I guess we found out, this was it," he said.

Revlon is a New York-based cosmetics company.

In other news, Loral Space & Communications Ltd. said its third-quarter loss more than doubled, as a weak economy drove down sales.

The New York-based satellite company said its loss rose to $128 million, or $2.90 per share, from $57 million, or $1.53 per share, a year earlier. Revenue fell 78 percent to $47 million.

Loral's 10% notes due 2006 were down 3 points to 76 bid, 78 offered, according to a trader. The bonds had fallen 2 points Friday after releasing the news.

"It was strange that the bonds performed more poorly Monday than on Friday when the report came out, but this issue can act strangely sometimes," he said.

Loral said results reflected the negative impact of the economic downturn on the space industry and Loral's business units.

The company said that since the end of the third quarter, its Space Systems/Loral satellite-making unit has received $75 million of advances on orders for three satellites.

In other news, WorldCom Inc. was "off a little" at 35½ bid, 36 offered, down about a ½ point, according to a trader.

After the market close, WorldCom released its monthly operating report for September. WorldCom recorded $1.95 billion in revenue versus $2 billion in August 2003.

Operating income for September was $88 million, a decline of $50 million from August primarily reflecting lower revenues. Sales, general and administrative expenses were flat month-over-month, including $47 million in August and $55 million in September for restatement and audit expenses.

(Paul Harris contributed to this report)

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