NEW YORK-Wireless telecommunications services and equipment providers issued nearly $14 billion in debt securities during the first quarter of this year, according to Securities Data Co., Newark, N.J.
Overall issuance of investment-grade debt in all industry sectors was approximately $194 billion, more than two-thirds ahead of the volume during the same quarter a year ago, Securities Data said. About $8.2 billion of the nearly $14 billion in debt issues sold for wireless telecommunications-related companies during the first quarter of 1998 was in the investment-grade category.
Noninvestment-grade debt issuance during the first three months of this year, “is within sight of the all-time quarterly record,” Securities Data said. Just more than $40 billion of so-called junk bonds, including Rule 144A private placements, were sold during the first quarter. This amount bested the $34.8 billion record set during last year’s third quarter.
Wireless telecommunications-related companies accounted for $5.65 billion of that total. Nextel Communications Inc.’s February sale of $1.63 billion in high-yield debt securities was the single-largest junk-bond wireless deal sold last quarter.
On the investment-grade side, two other issuers, each with wireline and wireless properties, dominated the bond market in terms of sheer deal size: Cable & Wireless plc and Ameritech Corp.
London-based Cable & Wireless sold $1.8 billion on the same day in March but in three separate issues.
Chicago-based Ameritech, sold a total of $1.75 billion in debt as five separate issues on the same day in January.
