Nextel Communications' bank debt broke par and traded as high as the 1001/8 1003/8 level after the company came out with its second quarter earnings results and announced a $1 billion note offering. Traders said it was a combination of good results and the new financing that lifted the paper from just under par. The name hit its low in mid-July of last year when it was quoted in the high 70s, according to LoanX.
While none of the new financing will be directed to pay down bank debt, the proceeds of the senior serial redeemable notes issue are slated to redeem some of the company's preferred stock and also tender all its outstanding 10.65% senior notes. Bear Stearns and Goldman Sachs are joint book runners for the offering and Morgan Stanley and UBS are joint lead managers. A Nextel spokeswoman noted that the company will continue to opportunistically refinance its debt.