Nextel Finds Higher Level
Nextel Communications' debt has pulled up into the 91 1/2 range from its last trade of 90. The bank debt was said to be trading up last week on the heels of the bonds trending upwards. Volume was estimated between $5 and $10 million. "People are awaiting the numbers from next quarter," said a dealer, explaining the hesitation to bid up on the paper any higher. Dealers explained, while there is optimism on the credit, a tough market makes players wary of bidding up for paper until a company announces official numbers. Calls to Paul Saleh, cfo, and the company's investor relations department were not returned.
Nextel's paper dropped into the low 80s late last fall on a weakening economy, but inched back up to the low 90s as the year closed and investors were said to be looking to put their money into staple names. The company has a $5 billion facility that breaks down into four tranches. It matures in 2008. Pricing ranges from LIBOR plus 2% to LIBOR plus 3 5/8 %. Bank of Nova Scotia, J.P. Morgan, Barclays Capital and TD Securities are the lead arrangers, according to Capital DATA Loanware.