Guys,
For those of you who are asking what a 144A is, the answer is that it is another way of issuing bonds. Usually bonds are issued for the public (i.e., institutional investors and other people like you me). The 144A issuance is a private placement (i.e., not public) and aimed at "qualified investors", namely, professionals with a lot of money and not individuals (unless they are very, very rich > $100 mil).
The difference between 12.25 and 12.75 can be explained by the fact that the bonds were issued at a discount (a 12.75% on $100 is roughly equal to 12.25% on 98 and change - think about the points on your mortgage).
The spread at which these bonds were issued (700+) was huge, so was the absolute rate of 12.75%, but it is a reflection of the market. What worries me is that NXTL seems to have "panicked" a bit here. They must have been really been concerned that the market may not reopen for some time (not my view by the way).
Market conditions have further improved over the past couple of days, and do not be surprised if you see more NXTL bonds issued (I hope not at these levels - I might be tempted to buy them instead of the stock).
I hope you find the above useful...
Tavros
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