Vertis paper active, up on refinancing chatter; Clear Channel could be shopping new bond deal

By Stephanie N. Rotondo

Portland, Ore., Nov. 25 - As was expected the day before Thanksgiving, the market was on the quiet side Thursday. But that didn't stop Vertis Inc.'s bonds from gaining as much as 7 points on the day.

In rather active trading for the pre-holiday session, Vertis' notes improved during the session. According to one source, the rumor mill was creating refinancing buzz that could account for the firmness.

Meanwhile, Clear Channel Communications Inc. continued to dominate trading. Again, a trader credited a rumor for the recent activity.

"We got a few things done today, believe it or not," a trader said of the day's goings-on. Still, other than perhaps Vertis, he said there were "no shattering moves."

Vertis up on refinancing chatter

Vertis' bonds were "up a good bit," a trader said, as the rumor mill went to work.

The trader said the 18½% notes due 2012 traded up 6 or 7 points to around 60, while another saw the issue trading in wide range from 54 to 61.

Another market source quoted the notes at 58 bid, 60 offered, and pegged the 13½% notes due 2012 at 20 bid, 21 offered, a gain of 4 points on the day.

According to the first trader, there was a rumor floating around the market that the Baltimore, Md.-based advertising and marketing company was looking to refinance its bank debt. He credited the buzz with the day's gains.

Vertis filed for bankruptcy in July of 2008 and emerged later that year.

Clear Channel shopping new deal?

Clear Channel Communications' bonds remained the day's most active credit, following the trend it set throughout the week.

A trader said the paper "continued to inch a little bit higher," seeing the debt get as high as 51 by midday. But another trader saw the bonds coming back in to 47 bid, 48 offered just an hour later.

"They are lower now from yesterday, but the same as the day before," he said.

At another desk, the 10¾% notes due 2016 were deemed half a point to a full point better at 63.5 bid, 64.5 offered.

Clear Channel paper started gaining in active trading on Monday and continued to do so Tuesday. But with no fresh news, there seemed to be little explanation as to what was generating the activity.

But the first trader said he had heard that "they rallied because [the company] is potentially shopping a new bond deal."

The trader said it was possible that could be causing the momentum.

"If they refinance some shorter maturities, it might give them some breathing room if they delever the parent," he said.

Clear Channel Communications is a San Antonio-based multimedia company.

Broad market unchanged

Among other distressed credits, Catalyst Paper Corp.'s 8 5/8% notes due 2011 were unchanged, after having risen Tuesday, with "a small piece" having moved at 75, a trader said, and no trades seen on its 7 3/8% notes due 2014, which were quoted around 59 bid, 60 offered.

A trader saw Momentive Performance Materials Inc.'s 9¾% notes due 2014were at 95.5, against the backdrop of news about the company being expected to do a $500 million eight-year senior secured offering, probably rolling out the bond deal next week. He said the bonds saw "some trades today, but that was pretty much unchanged" on the session. "There was not a lot of activity."

Elsewhere, a trader said that "a lot" of Lyondell Chemicals' CAM bank debt was still trading, quoting that paper in a 73 bid, 73¾ offered context, which he called about unchanged, "but actively traded."

He said that the bonds "are just so thin," and did not see anything happening in them on Wednesday. "They just don't seem to trade."

Paul Deckelman contributed to this article.

© 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.