American Tower's bank debt last week climbed into the 95-96 range, up from 94 in late December. The uptick brings the debt closer to where it was in early December before it slipped from 96 1/2. A dealer reported the paper was offered in the 98 range last Wednesday, but there were no bids. Traders explained that paper can be offered as high as the seller wants, but what drives pricing are the bids. Dealers are awaiting first quarter numbers to make any calls on the company, but some are wary of its aggressive buildout as other telecom names stumble. But some players remain optimistic. "People worry about [the buildout], but they've got plenty of cash on hand," said a dealer. "As cell phone use increases, there's going to be more tower use. So they're in good shape."
Boston-based American Tower operates about 14,400 broadcast and communications towers. Calls to Brad Singer, cfo, and the investor relations department were not returned. Spokeswoman Ann Alter declined to comment. The company has a $2 billion credit facility that breaks down into three tranches and expires in 2008. TD Securities, Bank of New York, J.P. Morgan, and Credit Suisse First Boston are the lead arrangers.