ATP Oil & Gas debt gyrates during day's session; Clear Channel on the rise; Nokia bonds easing

By Stephanie N. Rotondo

Phoenix, Sept. 7 - It was a "strong day" for distressed debt, a trader reported Friday.

"We just seemed to chase bonds that weren't there," he added.

Another trader also said the market was generally firm during the final trading day of the week, though he remarked, "There is not a whole heck of a lot of things for sale."

ATP Oil & Gas Corp.'s bonds went on "a rollercoaster ride," a trader said. The gyrations were based on "varying bits of news," the trader said, noting specifically that the company had a court hearing on Thursday.

Elsewhere, Clear Channel Communications Inc.'s debt continued to gain ground, though there has not been any fresh news to push the paper up.

Nokia Corp.'s new smartphones, which were unveiled earlier in the week, are expected to go on sale in November, news outlets reported Friday. However, the market is concerned about the company's competition, especially as Apple's new iPhone is slated for release before Nokia's new devices. As a result, the bonds were "probably drifting in a little bit," according to a trader.

ATP goes on a ride

A trader said ATP Oil & Gas' 11 7/8% notes due 2015 were "very volatile," with "a ton trading."

The trader said the bonds gyrated in a 24 to 26 range, before ending the day at 25 5/8, down on the day, but up from the day's lows.

Another trader saw the debt hit lows around 23 before coming back to end "basically unchanged" at 26 bid, 26½ offered.

"ATP was a hot one," another trader said. Paper was trading down at 24 on the open, he said, but closed at 26½ bid, 27 offered.

According to the third trader, ATP gave a report on its current status, including an update on its debtor-in-possession facility. From what he had heard, "it looks like everything is OK."

Another trader said there was a lot of speculation about what was driving the movements, though it was unclear what the actual cause was.

Earlier in the week week, it was reported that the Israeli drilling licenses held by ATP's ATP East Med Number BV subsidiary had been seized by the Tel Aviv government at the request of two creditors who allege that they are owed $6 million by the unit. However, other oil and gas companies have asked the creditors to lift the seizure so that the licenses can be purchased, according to reports released Thursday.

The subsidiary was not protected under the Houston-based parent company's bankruptcy filing.

Clear Channel's ascent

Clear Channel Communications' debt "keeps moving higher," a trader said.

"All that paper was up at least another point," he said.

The trader pegged the 10¾% and 11% notes due 2016 around the 67 mark.

Another trader said the 11% notes gained "almost 2 points" to 67 3/8, while the 5½% notes due 2016 gained over a point to 531/2.

And, the 6 7/8% notes due 2018 earned 2½ points to finish the day at 531/2, as the 9% notes due 2021 moved up over a point to 891/4.

There has been no fresh news out on the San Antonio-based multimedia company to explain the recent gains.

Nokia languishing

In a Reuters report published Friday, the market learned that Nokia plans to put its new Lumia smartphones up for sale beginning in November.

The new devices were unveiled earlier in the week, but the Finnish wireless telecommunications equipment maker's debt was not much fazed, as the phones failed to excite consumers and investors alike. The company also failed to provide an official sell date at the time of the unveiling.

Additionally, the November release date will be well after Apple's release of its latest iPhone, which a trader said could be a "deathblow" if the new Apple product is any good.

As a result, Nokia's bonds were "probably drifting in a little bit," a trader said.

He quoted the 5 3/8% notes due 2019 at 83½ bid, 84 offered and the 6 5/8% notes due 2039 around 79.

Another trader said the bonds were down about half a point each, the 5 3/8% notes at 84¼ and the 6 5/8% notes at 78 1/8.

Broad market ends week firm

Among other distressed issues, NewPage Corp.'s 11 3/8% first-lien notes due 2014 were firmer at 65¼ bid, 65½ offered, according to a trader.

The trader also saw AMR Corp.'s benchmark 6¼% convertible notes due 2014 rising to 64 bid, 64½ offered and Ambac Financial Group Inc.'s debt climbing up to "33-ish."

Another trader said Caesars Entertainment Corp.'s 10% notes due 2018 were down 1¾ points at 661/2.

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