Small pieces of Centennial Cellular and Western Wireless paper were said to have traded up last week from the high 60s to the 72-74 and 73-75 ranges, respectively. Wireless names have gained roughly 10 points as a whole over the last month and tower names are up about three to five points, noted one trader. Market players point to the stellar performance of industry-bellwether Nextel Communications as well as a generally more positive sentiment for telecom and related credits.
The market is becoming more comfortable with the asset valuation for the wireless industry, traders explained. Others noted that the latest quarter results for many of the wireless companies have come back strong. "The financial results for our last fiscal quarter ending in August were stronger," said Thomas Fitzpatrick, Centennial cfo. The company is in a quiet period for the most recent quarter results, expected to be released in mid-December. Calls to Western Wireless financial officials were not returned by press time.
Tower companies, which lean heavily on the wireless companies for revenue, have also been creeping up over the past couple of weeks. Tower companies trade in tandem to the wireless names, noted one trader. When LMW went to press in a holiday-shortened week, Crown Castle International was quoted in the 89-91 context; the market for American Tower was in the 88-90 range; and SpectraSite Holdings term loan "B" was priced at the 88-89 level. Brad Singer, cfo and treasurer of American Tower, declined to comment.Tabitha Zane, SpectraSite's v.p. of investor relations, could not be reached by press time. Questions for Benjamin Moreland, Crown Castle's cfo, were referred to a spokeswoman who did not return calls.