A $2.5 million chunk of American Tower Corporation's term loan "B" traded at 99 1/4. The credit then softened to 99 in a subsequent trade. Dealers expect tower credits to trade down in sympathy to cellular names like VoiceStream Wireless. Still, some traders anticipate the credit will trade up and that market players are moving in on it while it's cheap. "It should go up; it's not a bad credit," a trader noted. Another dealer said tower sector credits are starting to dismantle along with the rest of the telecom names. "They're getting lumped in with telecom," he said. "Like Crown Castle, guys considered rock-steady have no bid out for them."
Calls to a company spokeswoman were not returned. American Tower has a $2 billion credit that breaks down into three tranches and expires in 2008. Pricing is LIBOR plus 3 1/4%. TD Securities, Bank of New York, J.P. Morgan, and Credit Suisse First Boston are the lead arrangers.