Independent auctions determine Collins & Aikman recovery values with respect to the DJ CDX HY Funded Notes
-- Collins & Aikman Products Co. was Removed from the Dow Jones CDX North America High Yield Indexes as a Result of the Bankruptcy Announcement of its Parent Company and subsidiaries --
NEW YORK, 24 June 2005 - CDS IndexCo LLC, the owner of the Dow Jones CDX family of credit derivative indexes, today announced the final recovery values with respect to the Collins & Aikman portion of the DJ CDX High Yield funded notes (Series 3 and 4). The final recovery values are the weighted average of the price of bonds sold over three auctions held on June 8, 15 and 22, 2005.
The recovery rates are as follows:
| INDEX | RECOVERY RATE |
|---|---|
| DJ CDX HY S4 T1 | 41.92% |
| DJ CDX HY S3 T1 DJ CDX HY S3 T3 | 41.53% |
| DJ CDX HY S3 T4 | 41.42% |
The auctions are a result of the announcement by Collins & Aikman Corporation that it and all of its US subsidiaries had filed voluntary petitions to reorganize under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court.
The following are the notes affected by the cash settlement:
| INDEX | COUPON | MATURITY | CUSIP |
|---|---|---|---|
| DJ CDX HY S4 T1 | 8.25 | 6/29/2010 | 26062RAA8 |
| DJ CDX HY S3 T1 | 7.75 | 12/29/2009 | 26056RAA6 |
| DJ CDX HY S3 T3 | 8.00 | 12/29/2009 | 26056RAC2 |
| DJ CDX HY S3 T4 | 10.50 | 12/29/2009 | 26056RAD0 |
As of May 19, 2005, affected notes have traded on a factored basis, without inclusion of Collins & Aikman. The recovery amount with respect to the Collins & Aikman portion of the notes will be paid on June 29, 2005, to holders of record as of May 23, 2005.
The member banks that are part of the CDS IndexCo consortium include: ABN AMRO, Bank of America, Barclays Capital, Bear Stearns, BNP Paribas, Citigroup, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, UBS, and Wachovia. Not all members of the consortium were involved in the structuring of the notes.
For more information, contact one of the individual dealers listed below. These dealers are the subset of CDS IndexCo member dealers that have been involved in the HY funded notes:
| Bear Stearns | Russell Sherman, 212-272-5219 |
| Citigroup | Danielle Romero-Apsilos, Corporate and Investment Banking Group Communications, 212-816-2264 |
| Credit Suisse First Boston | John Gallagher, Corporate Communications, 212-325-0932 |
| Deutsche Bank | Michele Agostinho, Press Office, 212-250-4864 |
| Goldman Sachs | Ed Canaday, VP, Media Relations, 212-357-0005 |
| JPMorgan | Michael Dorfsman, Corporate Communications 212-270-7317 |
| Lehman Brothers | Kerrie Cohen, Corporate Communications 212-526-4092 |
| Merrill Lynch | Michael Duvally, Media Relations, 212-449-3260 |
| Morgan Stanley | Mark Lake, Media Relations 212-761-0814 |
| UBS | Kris Kagel, UBS Corporate Communications, 212-713-8703 |
Note to Editors:
About CDS IndexCo
CDS IndexCo is a consortium of 16 investment banks which are licensed to be market makers in the Dow Jones CDX indexes. The market makers include: ABN AMRO, Bank of America, Barclays Capital, Bear Stearns, BNP Paribas, Citigroup, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, UBS, and Wachovia.
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