Revlon, Trump bonds come off a few points from last week's highs

By Paul A. Harris and Sara Rosenberg

New York, Feb. 17 - Bonds of Revlon Inc. and Trump Atlantic City Associates were both a little bit weaker on Tuesday as they settled down from last week's strengthening - in both cases in response to the companies revealing equity infusions and debt restructurings.

Revlon's rally had been spurred on by an announcement that the troubled New York-based cosmetics company plans to essentially cut its $1.9 billion debt load in half, mostly through a massive debt-for-equity exchange next month.

"The 8 5/8s due 2008 were 89 bid. They had been as good as 93.5 bid on Thursday. So they've settled down a bit," a trader said.

"The 8 1/8s are 102 bid. They were probably as good as 104 bid on Thursday. So they're off a little bit."

During Friday's shortened holiday session, the 8 5/8% paper was quoted at 91 bid and 92 bid depending on the desk, and the 8 1/8s were quoted at 103 bid.

Meanwhile, Trump's rally was attributed to the announcement that the parent company, Trump Hotels & Casino Resorts Inc., entered into an agreement with DLJ Merchant Banking Partners III, a Credit Suisse First Boston affiliate, which will give the debt-laden casino company a sizable equity infusion, allowing it to restructure its debt and substantially deleverage.

"The Trump ACs were 83.25 bid, 84.25 offered. The Trump Holding 11 5/8% due 2010 were 99.75. Those have been over par," a trader said.

Last Thursday, Trump Atlantic City Associates' 11¼% first mortgage bonds due 2006 jumped to 84 bid from 79, while the Trump Holdings & Funding's 11 5/8% notes due 2010 pushed up to102 bid from 98.

Trump is an Atlantic City gaming operator.

Adelphia bonds unchanged to firmer

Adelphia Communications Corp.'s bonds were unchanged to slightly firmer on rumors of the company's reorganization plan going through, according to a trader.

But the debt was still down compared to last Thursday's levels.

Adelphia's 10¼% notes due 2011 were quoted at 106.25 bid, 107.25 offered, a trader said, basically right around where traders quoted it on Friday.

However the paper is still off "about half a point to three-quarters of a point from Thursday, when they were 107.75. So it's a little weaker but not bad," the trader added.

The Greenwood, Village, Colo.-based cable operator's bonds had recently been firming on investor expectations that the company would unveil improvements to its prospective reorganization plan, which, among other things, currently calls for current shareholders to receive nothing when the company emerges.

The judge overseeing the company's restructuring recently turned down efforts by disgruntled shareholders to gain the right to put forward their own plan. The shareholders believe the company could be worth billions of dollars more than the level proposed in management's plan.

Adelphia filed for Chapter 11 last year and plans to emerge sometime in the first half of this year.

Charter unchanged to weaker

Charter Communications Inc.'s bonds were unchanged to slightly weaker depending on which trader was asked.

The cable company's 9.92% paper was quoted at 85.25 bid, 86.25 offered, about half a point weaker from Thursday's levels, according to a trader.

The 8 5/8% notes due 2009 were quoted at 85.25 bid, 86.25 offered, according to one trader, who put the paper lower by about a quarter of a point compared to Thursday's levels.

A second trader placed the paper at 86 bid down from 86.5 bid previously.

Meanwhile, a third trader placed the St. Louis cable company's notes at 86.5 bid, 87.5 offered "right where they were Friday".

"Cable paper is holding, it's not really firmer," the third trader said. "Charter and [Cablevision Systems Corp.] paper is a little firmer. [Cablevision] is up a couple of points from the lows. Charter is still struggling.'

He quoted Cablevision's 7¼% notes at 106 bid, 107 offered.

Overall it was a pretty quiet day in both high yield and bank distressed markets as some extended their long holiday weekend and others focused on catching up.

"It's been very quiet. It's like most people just kind of stayed home," one bond trader said.

This sentiment was heard in the distressed bank loan market as well, with one source saying "It was so quiet. I think a lot of people are out today. It was painfully slow today."

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