Nextel Communications' bank debt was offered at 84 5/8 last week, but there were no takers. Dealers faulted a limited number of buyers and a shaky market for Nextel's continued softening. They noted that based on fundamentals, the credit should be trading higher. "The bonds are up and the company has just announced deals for better capacity," said a trader. "But the credit is by no means bullet proof." He added that stressed players may be waiting for a better yield before they move in on the paper. Distressed dealers added that there's still too much uncertainty in the market to jump in on Nextel right now. Nextel is a telecommunications company based in Reston, Va. Calls to Paul Selah, cfo, were referred to Paul Blalock, head of investor relations, who declined to comment.
Nextel's debt, which had traded at 92 prior to Sept. 11, virtually stopped trading following the attacks and bid-offer spreads widened to 88-90 from 1/4 of a point differences as market players scrambled for a level (LMW, 9/23). Nextel has a $5 billion facility that breaks down into four tranches. It matures in 2008 and is priced at 35/ 8% basis points over LIBOR. Bank of Nova Scotia, J.P. Morgan, Barclays Capital, and TD Securities are the lead arrangers, according to Capital DATA Loanware.