Quiksilver looks to recoup losses; Walter, Endeavour weaken as ratings cut; NII debt gains

By Stephanie N. Rotondo

Phoenix, Sept. 8 – It was a mixed day for distressed debt on Monday as recently topical names remained in focus.

A trader said Quiksilver Inc.’s debt “stopped their freefall,” a trader said, following the company’s late Thursday release of weak third-quarter results.

The bonds were down hugely in Friday trading.

But come Monday, the 10% notes due 2020 managed to inch up a little higher, the trader said, seeing the notes just over a point higher at 64 3/8.

Standard & Poor’s took negative action on Walter Energy Inc. and Endeavour International Inc. on Monday, resulting in some weakness for both names.

A trader said Walter’s 8˝% notes due 2021 were “weaker,” pegging them around 44.

S&P cut the coal producer’s credit rating to SD from CCC+ on Monday, citing the completion of an exchange of $25 million of its 9 7/8% notes due 2020 for 2.25 million common shares.

The agency deemed the transaction as a distressed exchange, thus the downgrade.

A trader said NII Holdings Inc. paper was “a bunch better,” calling both the 7 7/8% notes and 11 3/8% notes due 2019 up “about 5 points,” at 67˝ and 68, respectively.

The trader also saw the 7 5/8% notes due 2021 rising 1˝ points to 16.

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