Short Takes on High Yields


It was announced last week that Cox Communication and AT&T reached a swap agreement whereby Cox will give up $2.8 billion worth of AT&T stock and will receive cable properties with about 500,000 subscribers. The deal involves two investment-grade companies, but one cable analyst said that it illustrates the type of deal likely to become more commonplace in the high yield sector over the next year. The sector has reached the mature stage and now companies will focus on clustering their properties, he said...

High yield issuer WinStar Communications signed agreements to provide service in as many as 700 buildings in the second quarter. Terms were not disclosed, but the arrangement brings the total number of buildings that WinStar services to 5,500. The issuer has set a goal of 8,000 buildings by year-end. The previous week, it was announced that 10 REITS themselves were considering a joint venture to provide telecom services to their buildings, putting them in competition with the telecom firms.