Short Takes on High Yields


Just before recessing for Thanksgiving, the Second Circuit Court of Appeals announced that it was remanding NextWave's litigation against the Federal Communications Commission back to U.S. Bankruptcy Court. Although the decision further complicates the outcome of an ongoing fight for NextWave's PCS spectrum, "nobody really knows what it means, but it's certainly not good for us," said one Nextwave official. The court did not immediately explain its action, and NextWave is waiting to examine the court's opinion when it is released later this month before taking any further steps...

High yield issuer SpectraSite Holdings agreed to buy Apex Site Management, a rooftop management company, for $60 million of its stock. CIBC World Markets said the news was a "minor positive" for the senior discount notes partly because the business requires minimal additional capital investment to realize an increased cash flow. SpectraSite has been on an acquisition binge in recent months, recently completing a deal for 2,000 towers from Nextel. It also plans to buy 94 towers from DigiPGH PCS Inc. for about $36 million in cash...

Loews Cineplex Entertainment Corp. said last week that it now expects to report wider-than-anticipated losses for the third quarter, even bigger than the $12.1 million loss last year in the same time period. The expected loss for the quarter this year had been 18 cents a share.