A $25 million piece of AT&T pro rata paper traded late last week at 99 3/8 . According to dealers, the level is on target with recent trades. One market watcher said the paper had been quoted at 99 1/4 the day before the trade. "A couple huge orders had come through [last week], which is why the prices are up," a trader involved in the deal said. "I think it will stay at this level because people aren't as aggressive."
He added that $1-2 billion of AT&T paper has traded since last December. The company has a $25 billion credit facility signed late last year.
J.P. Morgan Chase, Credit Suisse First Boston and Goldman Sachs lead the deal. Pricing for the 364-day revolver is 40 basis points over LIBOR. The facility is being used to refinance existing debt.