Coming out of bankruptcy in 2000 with $250 million in high-yield notes, we needed a business model that was not capital-dependent.

Through the sale of high-yield notes, Towers has borrowed nearly $400 million from private investors across the country.

The high-yield notes, which mature on June 1, 1998, and carry a coupon of 13.5 percent, were priced at par.

Activity in the corporate bond market was highlighted by an offering of $300 million worth of high-yield seven-year senior notes for the Transco Energy Company.

About one-fifth of that debt is in high-yield notes at 10.63 percent interest.

Only one new issue was priced yesterday, a $225 million offering of high-yield five-year notes from Arkla Inc.

Judging from Globalstar's outlook, he said, "It is very likely they will default on their public high-yield notes."

California's Department of Corporations is investigating Towers for selling unregistered high-yield notes.

Scammers offer an opportunity to invest in high-yield promissory notes, which work much like bonds.

The Comcast Corporation offered $300 million of 20-year high-yield senior subordinated notes through Merrill Lynch & Company.