Winn-Dixie holds gains; Trico Marine firms off low; Calpine paper steady

By Paul Deckelman and Sara Rosenberg

New York, March 24 - Winn-Dixie Stores Inc. bonds were heard by players in distressed junk bond debt to have held onto the gains they notched Tuesday when the Jacksonville, Fla.-based supermarket operator's notes strengthened on news that the company was looking for a private equity investor to buy into the company.

A trader quoted the company's 8 7/8% notes due 2008 as bid in the 89-90 area, "up a couple of points" from recent levels.

The Deal.com reported that the founding Davis family, which controls 40% of the stock, is shopping the supermarket company around, trying to line up some private equity money, although the Davis clan would retain control. The article also mentioned the Albertson's nationwide supermarket chain as a possible buyer.

Elsewhere, the trader saw Fibermark Inc.'s 10¾% notes due 2011 and 9 3/8% notes due 2006 at 49 bid - up slightly from the levels in the mid-40s to which the bonds had slipped earlier in the week, but down from the low 50s.

The trader said that "they've been just trading easier. There were rumors that they're going trade flat," or without the accrued interest - usually a sure sign of an impending default - "but they haven't traded flat yet. But there are all sorts of rumors."

He also saw Trico Marine's bonds trading as low as 51 bid during the session, before coming back off those lows to end at 52 bid, 53 offered.

And traders saw no movement in the bonds of Doman Industries Inc., even though the court-appointed monitor said that two possible lenders or investors in addition to InterFor were looking at the troubled Canadian forest products producer and that term sheets on prospective investment ideas might be coming soon.

CalGen steady

On the bank debt front, a trader said that overall, "it was a pretty quiet day with some business getting done but mostly "mundane stuff."

Calpine Generating Company LLC's first and second lien term loans held steady, with the $600 million first priority secured floating rate term loans due 2009 quoted at 99.75 bid, 100.5 offered and the $100 million second priority secured floating rate term loan due 2010 quoted at 94 bid, 95 offered, according to a second trader.

The bank debt had dropped on Tuesday in reaction to Standard & Poor's late Monday announcement that rated the third lien floating rate notes at CCC+ as opposed to the B- rating that the market was expecting, according to a market source. "All people who bought figuring it would be a B- are not happy," the source added.

On Monday, prior to the release of ratings by S&P, the first lien term loan was quoted at 100.25 bid, 100.5 offered and the second lien term loan was quoted around 96.5

CalGen is a wholly owned subsidiary of Calpine Corp., a San Jose, Calif., power company.

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