Nextel Communications' debt has resurfaced at 91-92, after dipping into the 89 range two weeks ago. About $10 million traded last week, and dealers said all eyes are on the company's levels, which have recently been dragged down with other telecom credits. "Because so many are in Nextel, people get concerned when they think the market value is dropping," a dealer said. "There's no trend right now. The levels are just waffling." Another dealer said buyers see the paper as relatively cheap. "It's bouncing around, finding its support level," he said. "People feel like it's a little cheap and oversold."
The company has a $5 billion deal which breaks down into four tranches and expires in 2008. Bank of Nova Scotia, J.P. Morgan Chase, Barclays Capital and TD Securities lead the deal, according to Capital DATA Loanware. It is priced at 33/ 8% over LIBOR.