Sprint Nextel notes weaken on huge subscriber losses; American Realty debt recovers ground

By Stephanie N. Rotondo

Phoenix, Nov. 4 – The midterm elections were keeping things busy Tuesday and investors were particularly focused on the primary high-yield space.

For distressed debt, that meant there was little room to move.

However, there were a couple names on the radar – names that have not yet technically been designated as distressed, but names that could be on their way into that space.

One such name was Sprint Nextel Corp. The telecommunications company released weak earnings late Monday, showing a hefty subscriber loss for the quarter. Come Tuesday, the company’s debt reacted by drifting down.

Sprint also said that it was cutting its job force by 2,000 as it looks to reduce annual costs by $1.5 billion.

Looking forward, the company did not seem to have good news either, adjusting its 2014 EBITDA forecast to $5.8 billion to $5.9 billion, down from a previous estimate of $6.9 billion.

American Realty Capital Properties Inc. was another name investors were keeping an eye on. The company has been in a pretty steady decline since reporting accounting issues and a Securities and Exchange Commission investigation on Wednesday.

But Tuesday trading saw the company’s capital structure recovering some of those losses.

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