Alpha Natural earnings beat expectations, but bonds weaken; MolyCorp boosted by financing

By Stephanie N. Rotondo

Phoenix, Aug. 6 – Distressed bonds were mixed Wednesday, as investors focused on news away from the space.

Geopolitical concerns were increasing yet again as NATO deemed an incursion by Russia into the Ukraine as likely. Investors were also keeping an eye on earnings and the breakdown of a merger between Sprint Nextel Inc. and T-Mobile.

Of the day’s distressed dealings, Alpha Natural Resources Inc. paper was weaker on the day, even as the company reported earnings that beat estimates.

Still, the numbers showed a wider loss than the previous year.

In the broader mining sector, MolyCorp Inc.’s debt got a boost after the company announced a commitment for $400 million of secured financing.

But it was the retail arena that was really showing the day’s mixed trend.

A trader said Gymboree Corp.’s 9 1/8% notes due 2018 held steady at 61½. But Claire’s Stores Inc.’s bonds were mostly lower, the 9% notes due 2019 at 101 1/8, the 7¾% notes due 2020 at 68½ and the 8 7/8% notes due 2019 at 81.

The debt was down anywhere from a quarter-point to a half-point, depending on the issue.

For its part, Toys “R” Us Inc.’s 7 3/8% notes due 2018 finished 1½ points higher at 77½, though its 10 3/8% notes due 2017 slipped nearly a point to 83½.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.