Midday Commentary: Sprint Nextel bonds active in early trading after job-cut news

By Paul Deckelman

New York, Aug. 28 - Sprint Nextel Corp.'s bonds were among the high-yield volume leaders in early trading on Wednesday.

The company's 6% notes due 2022 were around unchanged at the 93¼ bid mark on volume of over $5 million.

Sprint Nextel's 6% notes due 2016 were seen down 1/8 point at 106¼ bid with more than $4 million having changed hands by about 10:45 a.m. ET.

The Sprint Nextel 7% notes due 2020 were about a half-point lower at 102¾ bid, with over $1 million having moved.

The company's Nasdaq traded shares were down 2 cents, or 0.36%, at $6.73. Volume was over 3 million shares, about one-tenth of the usual daily turnover.

The Overland Park, Kan.-based Number-Three U.S. wireless carrier announced on Tuesday that it will cut about 800 customer-service jobs. However, the overall workforce size will stay in the 40,000 area, it said.

The cuts represent the largest employee reduction since Japanese wireless carrier SoftBank Corp. acquired a controlling stake in Sprint Nextel last month.

Sprint Nextel recently shut down the old Nextel network that it had acquired when what was then Sprint Corp. acquired the former Nextel Communications Inc. in 2005, migrating the legacy customers over to its own Sprint network platform.

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