Nextel Communications' "B/C" paper is trending upward again, last hitting 90 in a total of $20 million in trades. Dealers cite new product offerings as helping to push the credit back up. On Nov. 14 the company announced the official launch of an all-digital wireless network and services combining digital cellular, digital two-way radio, wireless Internet access and text/numeric messaging in one compact phone.
Some traders, however, downplay the latest announcement, and say that as the primary market slows, more attention is being put into secondary trading. A dealer said, "There's no primary market to speak of right now. Funds are still sitting on some cash and they need to use it, so why not go into a benchmark name?" Nextel is based in Reston, Va. Calls to Paul Selah, cfo, were referred to the corporate communications department and not returned.
Although Nextel had traded above par at its strongest point, dealers say it will likely stay under that level at least until year-end. "People are squeamish about paying above par," said a trader. Nextel has a $5 billion facility that breaks down into four tranches. It matures in 2008 and is priced at 35/ 8% over LIBOR. Bank of Nova Scotia, J.P. Morgan, Barclays Capital, and TD Securities are the lead arrangers, according to Capital DATA Loanware.