There was heavy trading in Nextel Communications' bank debt early last week after the company released its quarterly numbers. Levels notched up to the 94 1/4 to 94 1/2 range from 93 1/4 and approximately $20 million had changed hands by Tuesday morning. The Reston, Va.-based company released numbers early last week, indicating subscriptions are up by $1 million.
Dealers said offers made it to 95, but no trades were reported at that level. "I had it offered to me at 95 1/2, which I think is a little high," a dealer said. He said the market was anticipating strong earnings. "People expected it, but now that they're seeing it, they're reacting to it," he remarked. Nextel, considered one of the most liquid credits in the market, has dodged much of the telecom industry's problems. Yet a month ago levels bottomed out at 90 7/8 as the credit was weighted down by the industry crash [LMW, 7/5]. "Credits like 360networks are gone [trading down], but even that helps Nextel; people are looking for a strong telecom credit," a trader noted.