A handful of telecommunications names took a hit last week, each dropping about 10 points, with dealers saying a revenue projection by Global Crossing sparked the trading. Global Crossing's debt traded in the high 50s while McLeod USA traded in the low 50s. Bank debt for Level 3 hung in and traded flat at 60. "Their bonds are holding up because of a bond tender offer," a dealer said, noting this in turn is supporting bank debt levels. Exact volume could not be determined, but dealers said it was minimal. Late last week Moody's Investors Service lowered the rating on Global Crossing's bank debt to B1 from Ba1 due to the company's recent financial guidance that projects a revenue shortfall. The telecommunications company is based in Hamilton, Bermuda.
Global Crossing's Levels Sink on Revenue Projection