Sprint Nextel debt steady as company rolls out network; Clear Channel softens; Reddy Ice gains

By Stephanie N. Rotondo

Portland, Ore., April 13 - Trading in the distressed bond arena was lackluster Friday, given the Passover holiday and, as one trader noted, opening day for the New York Yankees.

In the news was Sprint Nextel Inc. The company on Thursday gave a date for which it would unveil its new network. Come Friday, the bonds were holding their own.

Clear Channel Communications Inc. also remained busy, but paper was losing footing Friday. There was no news out to drive the dip.

Also, Reddy Ice Corp.'s subordinated debt was "better bid," according to a trader, although volume in that name was light.

Sprint holds steady

Sprint Nextel announced the rollout date of its new LTE network that will replace the old Nextel network.

The company said Thursday that the network should come by 2014.

But that news did little to spark any price moves in Sprint's debt.

A trader said there was "not much change for Sprint," seeing the 6 7/8% notes due 2028 unchanged at 753/4. The 6.9% notes due 2019 were likewise unchanged at 871/2, while the 7 3/8% notes due 2015 slipped a touch to 961/4.

Another market source placed the 6 7/8% notes at 76¾ and the 6.9% notes at 871/2.

A third market source called the 6% notes due 2016 up half a point at 89½ bid.

In addition to news of the network rollout, the market is also preparing for Sprint's earnings release later this month. Analysts are forecasting a 41-cent per share loss on $8.72 billion in revenues.

Sprint is an Overland Park, Kan.-based telecommunications provider.

Clear Channel weakens

A trader said Clear Channel Communications' debt was declining Friday, despite a lack of news to drive the movement.

He saw the 11% notes due 2016 at 70, down 2½ points.

"That was the big one," he said.

The 9% notes due 2021 were meantime off half a point at 891/2, as were the 10¾% notes due 2016, which ended around 73.

Clear Channel is a San Antonio-based multimedia company.

Reddy Ice better bid

Reddy Ice's 13¼% notes due 2015 were "better bid," a trader said, though he noted that few actual trades took place.

He placed the debt in the high-teens.

The Dallas-based ice maker announced Thursday that it had voluntarily filed a prepackaged bankruptcy filing "to complete its previously announced plan to strengthen its balance sheet and ensure strong financial footing for the future," the company said in a press release.

The company has secured a $70 million debtor-in-possession facility from Macquarie Bank Ltd. The bank will also provide $50 million in exit financing.

The company expects to emerge from bankruptcy in 45 days or less.

Following news of the filing, Standard & Poor's downgraded the company's credit rating to D from CC on Thursday. Moody's Investors Service followed suit on Friday, cutting the rating to D from Ca.

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