Dura senior bonds price at 24.125, subordinated bonds at 3.5 at default swaps auction

By Caroline Salls

Pittsburgh, Nov. 28 - Dura Operating Corp.'s senior bonds priced at 24.125 at a credit default swaps auction Tuesday and its subordinated bonds priced at 3.5, according to a company news release.

In the initial bidding period, the senior bonds were priced at 24.878 by participating dealers and the subordinated bonds at 4.25.

On the senior bonds, 11 dealers submitted inside markets, physical settlement requests and limit orders, with the final inside market midpoint set at 24.875 and with $9 million in buy physical settlement requests, $29 million in sell physical settlement requests, $9 million in physical settlement request trade and $20 million in net open interest on the offer side.

For the subordinated bonds, 12 dealers submitted inside markets, physical settlement requests and limit orders, with the final inside market midpoint set at 4.25 and with $77 million in net open interest, $4 million in buy physical settlement requests, $81 million in sell physical settlement requests, $4 million in physical settlement request trades and $77 million in limit order trades.

The auction was administered by Creditex Group Inc. and Markit Group Ltd.

The auction was part of the 2006 Dura CDS Protocol, which is published by the International Swaps and Derivatives Association.

The association said the protocol enables counterparties to amend credit derivatives documents on a multilateral basis by bypassing one-on-one negotiations in favor of an auction.

According to the release, the inside market midpoint is an indicative level based on two-way markets entered into the auction by participating dealers.

The open interest is the net balance between buy and sell physical settlement requests entered by participating dealers.

Dura, a Rochester Hills, Mich.-based automotive parts maker, filed for bankruptcy on Oct. 30 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 06-11202.

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