Spectrasite Holding's bank debt traded down to the 93 3/4 range from 94 1/2 last week, as tower credits appear to be losing ground in a market hit hard by telecom paper saturation. Dealers quoted levels at 92-94. "All the tower credits are a little softer after the Crown Castle conference call," one market watcher said, noting that the company reported a mixed bag in earnings results. Another dealer was surprised that Spectrasite's levels had slipped. "I thought it would stabilize with Nextel coming out with better numbers. It might lag, since telecoms use those towers. Maybe it will trade back up by fall," he said. The Cary, N.C.-based company is a leading provider of outsourced network services to the wireless communications and broadcast industries in the U.S. and Canada. Dave Tomick, cfo, agrees that tower credits tend to go in lockstep with telecom names. "When people see the business is doing well, we'll trade back to normalized levels," he said.
Spectrasite Levels Break Under Telecom Weight