American Tower Debt Trades On Rocky Projections
American Tower's levels continue to hover in the low 90s range as $10 million of the bank debt traded last week at 91 1/2. Dealers said they expect the credit will soften further as tower companies begin to feel the effects of a weak telecommunications industry.Joseph Winn, cfo, said, the company has seen good strength in the paper and solid demand on its towers. "The tower companies have been reporting strong organic growth." Winn said. "Concerns around this paper have been due to leverage or debt. We've been supported for a long time in this marketplace, and we're going to do just fine."
Two weeks ago the credit traded down to 91, then landed at 89. "It's trading down purely on technicals," said a dealer, explaining an uneven balance of buyers and sellers. "The whole sector's been beaten down."
American Tower's levels first took the hit two weeks ago because the company announced projections that there will be less demand for tenant space in the upcoming quarter (LMW, 11/11).