Everyone notice this bit of news?
WORLDCOM SEEN FATTENING YIELDS
Telephone giant WorldCom Inc. (NASDAQ:WCOM) is seen paying up in yields, topping 8 percent on some of the $7 billion to $8 billion of global bonds, it plans to sell by Wednesday, dealers said on Monday. The No. 2 U.S. long-distance phone company, based in Clinton, Miss., is planning to complete one of the year's largest bond sales after a week when investment-grade companies sold more than $18 billion of bonds.
WorldCom's bond sale is now expected to include: three-year notes yielding 2.2 to 2.25 percentage points,10-year notes yielding 2.5 to 2.55 percentage points more than 10-year Treasuries, 30-year bonds yielding 2.7 to 2.75 percentage points more than 30-year Treasuries, and euro-denominated seven-year notes.
WorldCom is being forced to offer a pricing concession to get the sale done. Its 8.25 percent notes maturing in 2010, for example, were bid Monday to yield about 2.35 percentage points more than Treasuries.
Dealers said WorldCom is no longer considering a sale of seven-year sterling-denominated notes. |
