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Triton Yo-Yos After Earnings Call

18 Mar 2005

Triton PCS' $250 million "B" loan slid up and down during the week after the company announced lower-than-expected earnings last Tuesday.

Triton PCS' $250 million "B" loan slid up and down during the week after the company announced lower-than-expected earnings last Tuesday. "They are doing $44 million EBITDA and they were projecting $55 million. They also revised their yearly guidance from $160 million to $70 million, so the whole thing can blow up soon," one trader said.

The Berwyn, Pa.-based wireless provider's "B" loan was trading north of 101 1/2-102 before the news. After the earnings call it traded down to 99 3/4 before recovering to 102 -102 1/4, a trader said. Pricing on the "B" is LIBOR plus 3 1/4%.

"The bonds rallied a little bit so people realized the sell off was just a little bit overdone," a trader explained. Before the news Triton's 8 1/2% bonds were quoted at 96-97. The latest quote on the bonds is 91 1/2-92 1/2, said the trader. David Clark, the company's cfo, did not return calls.

18 Mar 2005