The bank debt for Teligent is said to be slipping in a market with weak appetite for telecom paper. Last week paper was offered in the low 20s, and a dealer said the market is as low as 15. "There's a lack of financing for telecom buildouts," said a market watcher. "[Teligent] is afflicted with the same change in sentiment that a lot of these telecom names are afflicted with. They had issued a lot of bonds and bank debt on build out plan, and a customer base isn't materializing to service the debt. The indicated market is 15-25, but it might be a tighter inside market." Calls to the company were not returned.
Teligent hit the 55 range in January, with dealers citing a weakening CLEC sector. J.P. Morgan Chase, TD Securities, and Goldman Sachs lead the deal for the $800 million credit facility, according to Capital DATA Loanware. It expires in 2006 and is priced at LIBOR plus 3%. It breaks down into a $65 million revolver as well as two term loans of $500 million and $200 million.