iHeart, Verso bonds come in; Alpha Natural declines; DynCorp steady as S&P reviews rating

By Stephanie N. Rotondo

Phoenix, June 23 – The distressed debt market was mostly steady Tuesday as the broader markets moved into higher territory.

The broader markets were gaining ground as investors hoped for a deal in Greece. A fresh round of economic data – including a rise in new home sales – was also playing a role.

But among the day’s most active issues, there were signs of weakness.

For instance, a trader said iHeartCommunications Inc.’s debt was “down a little bit,” seeing the 14% notes due 2021 at 75 and the 10% notes due 2018 in an 85¾ to 86 context.

Verso Paper Corp.’s 11¾% notes due 2019 were meantime off 3 to 4 points at 59½ bid, 60 offered, according to a trader.

There was no fresh news out on the Memphis-based papermaker.

In the coal arena, Alpha Natural Resources Inc. bonds were weakening just one day after the company announced it had idled a mill in Kentucky.

A trader said the 6¼% notes due 2021 traded at 9 in the morning, but then came back to close in a 7 to 7½ area.

“So those are down a few points,” he said, deeming the day’s move as “ugly.”

DynCorp International Inc.’s $455 million of 10 3/8% notes due July 2017 shrugged off news that Standard & Poor’s was considering cutting the defense contractor’s credit rating.

© 2015 Prospect News.
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