Thursday, June 14, 2007

Alltel's Debt Plans Will Prompt Downgrades, Credit-Default Swaps Show

(Bloomberg) -- Alltel Corp.'s plan to take on $23.2
billion of debt to finance its leveraged buyout may cause bonds
of the fifth-largest U.S. wireless company to slide further into
speculative-grade territory, credit-default swaps show.

Credit-default swaps based on $10 million of Alltel bonds
have jumped $11,700 this week to $231,500, according to CMA
Datavision. The five-year contracts reached a record $238,000
yesterday after the Little Rock, Arkansas-based company
disclosed details of the buyout.


Read more at Bloomberg Bonds News

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