A variety of telecommunications deals are continuing to fall under the weight of market saturation. Dealers said competitive local exchange carriers (CLECs), wireless and broadband companies are trading down. Nextel "B/C" dropped as low as 98 and has since been bid at 98.625, down from 100.25 a few weeks ago. SpectraSite Communications was as low as 98, but is sluggishly working its way to 99. Nextlink, once trading in the 98-99 range, is now at 91-92. "The CLECs are getting hammered," a dealer said. "The companies that need money in the near-term [for building their networks] have gotten hit. They may need to scale back."
Nextel has a $5 billion credit that breaks down into four tranches and matures in 2008. Bank of Nova Scotia, J.P. Morgan Chase, Barclays Capital, and TD Securities are the lead arrangers. Nextlink has a $1 billion credit facility that expires in 2007. TD Securities, Goldman Sachs, Barclays Capital, and J.P. Morgan Chase lead the deal.