Washington Group Gets Rebuilt, Telecom Credits Weaken

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Washington Group Gets Rebuilt, Telecom Credits Weaken

Washington Group's once-plummeting levels have turned around. Dealers reported a series of small trades this week in the 82-83 range, which is up from the mid-60s in late June. Meanwhile, dealers note increasing comfort surrounding the company's financial issues and confidence that its core business - construction - is in demand and profitable. The company is also expected to pull out of Chapter 11 bankruptcy protection by fall. Arch Wireless' debt is trading at 25, while Owens Illinois is trading at 90.

In par news, a $10 million piece of Global Crossing's bank debt traded into the 92 range, which is down from 94 less than a month ago. The credit is continuing to drop on a weak telecom industry. The "B" paper for American Tower hit 99 ¼ in a $10 million trade. Trading levels for Nextel Communications' "B/C" paper have softened to 93 ¾.

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