Nextel Communications' bank debt notched up in a series of trades amounting to $15 million last week. Debt hit 93 3/4 then softened to 92 3/4 last week on news that the company would buy back some of its bonds and swap it for equity. The company announced early last week that it would cut about $857 million consolidated debt by repurchasing senior notes of its Nextel International unit. Citing a slow overall market, dealers said there was little fanfare over the uptick in levels. "It traded up a point or so. There's not that much activity in it," said a dealer. Calls to Mike Brittain, cfo, were referred to Joe Wilkinson, v.p. investor relations. He declined to comment on bank debt trading.
Dealers explained that a quick uptick in levels, and a subsequent drop, points to a market that initially thought the debt-for-equity swap was related to Nextel Communications. "It doesn't affect the bank debt," a dealer explained, adding that levels had come back down to 92 3/4 late Tuesday.