RadioShack up from lows, weak post-earnings; coal sector mixed; Energy Future DIP breaks

By Stephanie N. Rotondo

Phoenix, June 10 – A distressed debt trader said RadioShack Corp.’s 6¾% notes due 2019 “rebounded for the lows” of the day after the company reported quarterly results.

The trader said the issue hit as low as 38½, but went out around 43 bid.

Another market source placed the issue in a 42¾ to 43¾ context, up from opening levels around 38½, but still down from a 48 to 49 range previously.

Excluding certain items, the loss was 98 cents per share. Analysts polled by Bloomberg were expecting a loss of 51 cents per share.

Additionally, the company said it had drawn its credit line down $35 million and that it expected to use more borrowings throughout the year. The Fort Worth, Texas-based electronics retailer is also in process of adding more letters of credit.

Alpha Natural Resources Inc.’s debt was “if anything, maybe a smidge lower,” a trader said.

Elsewhere in the coal space, Walter Energy Inc.’s notes were “still creeping up,” a trader said.

Energy Future Intermediate Holding Co. LLC’s (EFIH Finance Inc.) $1,325,000,000 24-month superpriority first-lien debtor-in-possession term loan (Ba3/BB) broke for trading on Tuesday, with levels quoted at par ¼ bid, par 5/8 offered on the open and then it moved up to par 5/8 bid, par 7/8 offered, according to a market source.

Pricing on the loan is Libor plus 325 basis points with a 1% Libor floor and it was issued at par, after tightening the other day from 99.

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