A $1 billion bond deal is said to be helping Nextel Communications's bank debt levels by providing liquidity. Several small trades totaling $20 million were reported last week, with levels topping off at 97 before settling at 95 1/2 to 96. Still, Nextel's bank debt is one of the most actively traded names, and dealers cautioned not to entirely rest the levels on the bond deal. "It should be marginally positive in my view and I would expect levels to firm," he noted, "but it's largely a technical at the moment." Calls to the company were referred to investor relations and were not returned.
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. It is priced at 3 3/8 % over LIBOR.