Six Flags helped by numbers; GM bonds hold tight despite company comments; Young Broadcasting wider

By Stephanie N. Rotondo

Portland, Ore., Aug. 14 - As the week neared its end, the distressed bond market closed largely mixed on the Thursday - even as the stock market regained some ground.

With a couple weeks still left to go in the quarter, Six Flags Inc. released preliminary figures for the fiscal period. The positive numbers proved to help out the amusement park operator's debt, which ended 3 points better.

Meanwhile, General Motors Corp.'s bonds held steady on the back of positive comments from company management. At an automotive conference, a GM top executive said the company was looking to speed up its restructuring plan, an effort to realize more savings soon.

A lackluster quarterly performance resulted in lackluster trading in Young Broadcasting Inc.'s debt. As the company said it was looking at its options to increase liquidity, the corporate debt hit a lull. One trader said the bonds were being quoted wide.

But as the halfway mark of the year has come and gone, some market players are still speculating what might jumpstart the lagging market.

"We are treading water," said one trader. He added that without a "September/October crash or an "October/November rally into the end of the year, nobody's going to do a bloody thing."

Numbers help Six Flags debt

An increase in attendance and revenue during its third quarter helped to boost Six Flags' bonds during Thursday trading.

One trader said the debt "definitely moved up, but there was not as much trading as you would have thought." He quoted the 9 5/8% notes due 2014 at 55.5 bid, 56 offered, up from 54.5 right after the figures were released.

At another desk, a trader pegged the 9 5/8% notes at 55.5 bid, 56.5 offered, up a couple points. But he said the 12¼% notes due 2016 were only slightly better at 94 bid, 95 offered. Another trader called the 9 5/8% notes up 3 points to around 56.

Though not yet through its third quarter, the New York-based amusement park operator said revenue as of Tuesday had increased 7.6% versus the year before. The company attributed the rise to a gain in attendance and higher consumer spending.

Attendance jumped 5.1% to 8.43 million guests during the quarter thus far. For the year, the company said it has experienced a 6.1% increase in revenue over last year.

GM bonds steady despite stock rally

General Motors' bonds did not rally as much as the equity, despite somewhat positive comments from company management.

A trader called the benchmark 8 3/8% notes due 2033 unchanged at 53 bid, 54 offered, while another saw that issue at 52.5, which he called "about the same." The second trader also saw the 7.2% notes due 2011 at 64.5 bid.

"Those seemed to get better late in the day," he said.

Another market source called the 7 1/8% notes due 2013 half a point better at 58 bid.

In the equity, the stock gained $1.09, or 10.62%, to $11.35.

Last month, the Detroit-based carmaker announced its plans to restructure, an effort to save $10 billion through 2009. But on Thursday, chief financial officer Ray Young said that the company is looking to speed up its timeline to see more of the savings in 2008. To that end, the company could boost liquidity by as much as $17 billon.

But to do that, the company might have to think of a new plan for its GMAC LLC lending unit, as well as its plan to create an independent union retiree health-care fund.

Earlier in the week, Moody's Investors Service downgraded the company to Caa1. In reaction, the company's bonds, as well as its bank debt, took a dip.

Quiet day for Young

There was "not a lot of Street action" in Young Broadcasting's bonds, a trader said, though the company released its financials Thursday.

The trader quoted the 10% notes due 2011 at 37 bid, 37.25 offered. However, another trader said he saw a much wider market in that issue at 30 bid, 45 offered. The second trader also said he saw a 25 bid in the 8¾% notes due 2014.

"I never liked Young," said one source

During a conference call to discuss its second-quarter results, the New York-based company's management said its balance sheet was impaired by a weakening economy. Revenues fell 6.7% to $37 million, while net loss widened to $153 million.

Young is still looking to sell its KRON-TV business, which the company put on the market back in January. Management said it was also looking at other alternatives to shore up its bottom line but declined to comment on what those other options might be.

Still, the company tried to remain upbeat, stating that it intends to make an upcoming coupon payment on its 10% notes.

Broad market mixed

Idearc Inc.'s 8% notes due 2016 saw some action, a trader said, ending at 42.25 bid, 42.5 offered, "right in line with where it has been."

Elsewhere, a trader said there was nothing going on in VeraSun Energy's debt, despite the company filing a $750 million shelf registration.

"I imagine they are lower on the news," he said, adding that the 9 3/8% notes due 2017 traded during the previous session at 58.

AMH Holdings Inc.'s 0% discount notes due 2014 ended the day with a 54.5 bid.

Linens n'Things' floating-rate notes due 2014 inched up to 42, which one trader called "a little better."

Realogy Corp.'s 10½% notes due 2014 gained another 2 to 3 points to close at 60 bid, 61 offered, up from around 58 previously.

A trader said that Pliant Corp.'s bonds "got hit" after the Schaumburg, Ill.-based plastic packaging maker filed its latest quarterly report with the SEC. He saw its 11 1/8% notes due 2009 at 75 bid, well down from the most recent previous round-lot trade at 82.25, on Monday.

Constar International Inc. "is not so good," a trader said, after the company came out with numbers during the morning. Its 11% notes due 2012 were being offered at 40, down from Wednesday's odd-lot levels around 43 bid, 44 offered, and well down from a round-lot trade at 45 on Tuesday, the victim of "a steady slide," said the trader, who also characterized the numbers as "not terribly bad - but unit volume was down."

Paul Deckelman contributed to this article.

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