Amkor slides on numbers, lower forecast; Charter, Sirius post more gains; NOVA slips, Lyondell steady

By Stephanie N. Rotondo

Portland, Ore., Feb. 13 - Friday the 13th turned out to be unlucky for Amkor Technology Inc., market players reported.

The company released its fourth-quarter results late Thursday and, come Friday, Amkor's bonds dropped as much as 5 points on the day. Traders said the loss, combined with a lowered first-quarter forecast, was to blame for the declines.

Meanwhile, Charter Communications Inc. and Sirius XM Radio Inc. saw their debt continue to post gains. Charter's bonds, which had jumped as much as 18 points during Thursday's session on news that company planned to file for bankruptcy, gained as much as 4 points. Sirius' notes ended about 5 points higher after news came out Friday that the company had entered into refinancing talks - which could lead to a bankruptcy filing.

NOVA Chemicals Corp. remained active, traders said. The bonds were seen slipping slightly during trading. In the rest of the sector, Lyondell Chemical Co.'s bonds remained stable, despite word that the company hoped to exit bankruptcy by the end of the year.

Overall, traders seemed somewhat pleased with the activity levels during the half-day session. One trader noted that "things quieted down" right around lunchtime.

"There was decent volume for an early close," he said. "But nothing special."

Amkor slides on numbers

Amkor Technology's bonds took about a 5-point hit during the last trading session of the week after the company released its quarterly report and reduced its guidance.

A trader pegged the 7¾% notes due 2013 at 57.5, while another saw the issue at 57 bid.

But another trader said the bonds were only off half a point at 57 bid, 57.5 offered.

A goodwill impairment charge of $671 million, or $3.67 per share, pressured Amkor's fourth-quarter results, the company said Friday. Net loss for the quarter came to $623.1 million, or $3.40 per share, compared with a net income of $93.7 million, or 46 cents per share, a year ago. Net sales dropped 27% to $549 million, just slightly above analyst expectations.

Still, the company said that cost cutting measures during the quarter saved the company about $18 million. Amkor expects to further cut costs in the first quarter by an additional $22 million.

Looking forward, Amkor also reduced its guidance for the first quarter, stating that it expects to post a loss of 34 cents to 49 cents per share. Sales are expected to come in around $ 340.4 million to $384.3 million, a 30% to 38% decline.

Amkor Technology is a Chandler, Ariz.-based microchip testing and packaging company.

Charter, Sirius post gains

Both Charter Communications and Sirius XM saw their debt continue to climb Friday, traders reported.

One trader called Charter one of the day's "big movers," its 8¾% notes due 2013 gaining 4 points to close around 81, with about $20 million trading. However, the 10¼% notes due 2010 dipped a point to 77, with $35 million changing hands.

At another desk, Charter's 8¾% notes were deemed "better again" around 80.

Meanwhile, the first trader saw Sirius' 9 5/8% notes due 2013 at 46, ending 5 points better. The second trader placed the issue around 45.

Yet another source pegged the paper at 41 bid, 42 offered, versus 36 bid, 37 offered previously.

Both companies' debt received good size boosts during Thursday's session, after Charter announced it would file for bankruptcy by April 1 and rumors began circulating that Sirius was in talks with DirecTV regarding a potential buyout.

Come Friday, Sirius announced that it was in discussions with debtholders to refinance its debt. However, the company noted that if an agreement could not be reached, it could be forced into bankruptcy.

Sirius has a $175 million debt payment coming up on Tuesday. The majority of those bonds are owned by EchoStar Corp., which recently made an unsolicited bid for the satellite radio provider. Sirius later rejected that bid and speculation is that the rumored talks with DirecTV are a move to avoid a takeover by EchoStar's Charles Ergen or a bankruptcy filing.

NOVA slips, Lyondell steady

NOVA Chemicals' 7.4% notes coming due in April were "active again," a trader said.

The trader saw the bonds slipping slightly to 56 bid, 57 offered. He added that the debt had been "all over the place," getting as low as 53 before heading back up.

Another source called the 6½% notes due 2012 a point weaker at 36 bid.

NOVA has gyrated back and forth as its upcoming coupon looms. Reports that the company had lined up interested investors - including Alberta Premier - pushed the debt up, though the reports later turned out to be false.

Elsewhere in the chemical sector, Lyondell Chemical's 10¼% notes due 2010 remained unchanged on news that the company hoped to exit Chapter 11 protections by year-end. A trader quoted the bonds at 17 bid, 19 offered.

"They have been wallowing in real cheap land lately," he said.

"The idea is to do everything possible to bring the company out by the end of the year," Vineet Bhatia, the lawyer representing Lyondell, said to a bankruptcy court on Friday.

Lyondell filed for bankruptcy on Jan. 6.

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