AT&T Corp.'s new 364-day revolver has seen a lot of action after breaking into the secondary market last week. Traders said the paper initially was moving in the 93 1/2 - 94 1/2 context, but they noted that it had firmed up to the 94 7/8 - 95 7/8 range later in the week. Although the $4 billion revolver has a short term, traders said the price is depressed because market players are hesitant to buy into the paper after being badly burned by other telecom names.
Pieces of the $4 billion loan, which is designated as a commercial paper backstop, were rumored to have traded between 94 and 97 in the grey market a few weeks ago. The credit was largely completed via four major banks Citigroup, Credit Suisse First Boston, Goldman Sachs and J.P. Morgan that each held approximately $550 million of the name. Calls to Thomas Horton, cfo, were referred to a spokesman, who declined to comment.