Short Takes on High Yields


GATX Capital formed a partnership to provide financing to start up telecommunications companies earlier this month. The venture, called GATX Telecom Investors II, was done in conjunction with Dana Commercial Credit Corp., Banc One Capital Corp. and Heller Financial. The partnership will finance deals up to $300 million. The first fund, GATX Telecom Investors I, finances up to $200 million...

Standard & Poor's placed 25 domestic high yield mutual funds on its "select" list last week. On average, the funds selected posted overall annual returns of 7.34% over the last three years, compared with an overall gain of 4.56% among other funds in the peer group and a 5.71% rise in the index. An S&P analyst characterized most of the selected funds as conservative, buying mostly single-B paper from U.S. issuers. Among the funds on the list were some well-known names like Morgan Stanley Dean Witter's High Yield Fund and the Eaton Vance High Income Fund...

Cosmetics company Revlon Inc. announced third quarter results, posting an operating loss of $121.1 million before a structuring charge of $4.4 million, compared with an operating income of $39.9 million for the year-ago period. Cash flow was a negative $91.8 million for the quarter, compared with $64.5 million last year...

High yield issuer Crown Castle formed a $900 million joint venture with GTE Corp. to manage and lease space on GTE's wireless communications towers. GTE will contribute 2,300 towers valued at $900 million, and in return it will receive $700 million in cash and a 25% stake in the company. It also will pay a fee of $1,400 a month for services and space on the tower. Crown Castle will own the balance of the venture...

Triton PCS reportedly said last week that it plans to at least double its customers in a year. Triton, an affiliate of AT&T Corp., provides the telecom giant with digital wireless coverage outside its main markets. AT&T awarded company licenses to develop markets surrounding its major cities in exchange for equity stakes...

Comcast Corp. agreed to buy high yield issuer Lenfest Communications for $6.7 billion in stock and assumed debt. AT&T Corp. is divesting its 50% share of Lenfest to comply with federal guidelines on cable ownership...

AT&T Corp. plans to buy cable systems in four western states from Chambers Communications Corp. The acquisition, which is expected to close early next year, will add 80,000 subscribers to AT&T's cable base.