Bonds of high-yield wireless companies traded up last week after AT&T Wireless (Baa1/BBB) announced that it would acquire affiliate TeleCorp PCS. Bids on TeleCorp 10.625% notes of '10 (formerly B3) rose from 93.5 to 114. Bids on other wireless affiliates of AT&T and Sprint, such as AirGate PCS (Caa1/CCC), Triton PCS (B2/B-) and Alamosa PCS (Caa1/CCC) rose two to four points each, in what analysts attribute to investor expectation of further acquisitions. But, Robin Lochner, wireless analyst at Deutsche Banc Alex. Brown, says that is a mistake. "Other than Dobson Communications, I don't think you can count on any near-term M&A activity in the sector." Bids on Dobson's 9.5% notes of '09 (B2/B) moved up five points, to 97.5.
Wireless Affiliates Trade Up On TeleCorp Acquisition