Dealers swap Nortel as company dips into revolver

Dealers, including Donaldson, Lufkin & Jenrette, Bankers Trust and NationsBank, swapped $40 million of Northern Telecom bank debt after the company reportedly drew on its revolver again to fund expansion plans, dealers said. DLJ, BT and Nations bankers declined to comment. Nortel is building out its wireless services and recently tapped one-third of its revolver to accommodate the build-out, insiders said. The news pushed prices to 100 7/8 last week, after trading at 100 5/8 for the past two months. Prices jumped past par last August after rumors swirled that the company would use the entire revolver by year-end (BL, 8/4). "If they fund the rest of it, the price will move up again," a dealer said.