Distressed wins back past session's losses; Realogy, TXU active on no news; papermakers mixed

By Stephanie N. Rotondo

Portland, Ore., Oct. 20 - The distressed debt market "grinded a little bit higher" during Wednesday trading, a trader said.

Investors, however, were focused on recent new issues, despite "lightness in deal flow." The trader speculated that "October nervousness" was also resulting in light dealings.

With no news to be seen, Realogy Corp. and Energy Future Holdings Corp. were among the day's actively traded bonds. Realogy, for its part, closed unchanged to maybe a tad better, traders reported. Energy Future meantime closed fractionally higher.

Papermakers such as AbitibiBowater, Inc. and NewPage Corp. have been on a tear of late, but were "strangely inactive" come Wednesday. Bankrupt Abitibi is nearing the end of its stay under Chapter 11 protections.

Realogy steady to better

A trader said Realogy's 10½% notes due 2014 moved up just over half a point to end around the 88½ level.

Another trader also placed the paper around that mark, though he deemed it to be "right where they have been within pennies."

He added that about $10 million of the notes changed hands.

The second trader also pegged the 11¼% notes due 2014 at 881/2.

There was no news out on the Parsippany, N.J.-based real estate services company.

TXU PIKs trade up

Energy Future Holdings' 11¼% PIK notes due 2017 were "busy" during the midweek trading session, a trader said.

He called the bonds up a smidge at 591/2.

At another shop, a trader said about $25 million to $30 million of the bonds turned over, hitting a high around 601/2. But the notes "came off a little by the end of the day," closing at 591/2.

Like Realogy, there was no fresh news out on the Dallas-based power producer.

Papermakers go near silent

There was, however, fresh news out on AbitibiBowater's bankruptcy case, but that did little to move the papermaker's debt and trading in rivals like NewPage was called "strangely inactive."

One trader called the debt unchanged, seeing the 9% notes due 2009 at 28¾ and the 7¾% notes due 2011 at 151/2.

Another trader also placed the 7¾% notes around the 15½ level.

Yet another market source deemed the 6½% notes due 2013 linked to Bowater Inc. up half a point at 29½ bid.

In NewPage notes, a trader said there was "not the normal" amount of trading going on in the credit, with just $2 million of the 10% notes due 2012 changing hands. He said the notes were "a little softer" at 59½ bid, 59¾ offered.

On Wednesday, AbitibiBowater's confirmation hearing was continued until Nov. 5. The company had previously hoped to emerge from bankruptcy by mid-October, but later estimated the exit would happen some time during the fall.

First Data mixed, Tribune quiet

Among other distressed credits, First Data Corp.'s 9 7/8% notes due 2015 traded up half a point to 833/4, while its 11¼% notes due 2016 slipped to 721/2, according to a trader.

The trader also saw offers for Tribune Co. bonds at 46. But he noted the offers were for odd-lots and that there was little in the way of actual trading in the newspaper publisher's debt.

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