Sprint mixed, rumors abound; Rite Aid slips ahead of earnings; Lyondell better as loan priced

By Stephanie N. Rotondo

Portland, Ore., March 30 - A distressed bond trader called Tuesday's market "firm but not that much better. It's better bid for than offered."

But trading volumes continued to be light, which was blamed on Passover and Easter, which bookended both sides of the week.

"The combination of the two holidays has got volumes down," a trader said. "And there is really no calendar.

"It's hard to push the secondary market any higher than it is unless we get a big influx of cash," he added.

"There was no real rhyme or reason to anything," another trader said.

Sprint Nextel Inc.'s debt finished the session mixed, according to market sources. There was no fresh news out, though there was some rumors floating around the interwebs regarding a mandatory employee meeting scheduled for Wednesday.

Rite Aid Corp. saw its bonds slipping during Tuesday trading. The losses came one day ahead of the company's earnings release.

And, Lyondell Chemical Co. priced its new term loan during the session. However, the news did little to stir up the company's bonds and one trader said that the bulk of action took place in the company's recent new issue.

Sprint notes mixed

Sprint Nextel bonds were "all within an eighth [of a point] up or down" from where they had been, a market source said.

The source saw the 7 5/8% notes due 2011 at 1023/4, the 8 3/8% notes due 2012 at 104 3/8 and the 6% notes due 2016 at 901/2.

Another source called the debt down about a quarter of appoint, also placing the 6% notes at 901/2.

"They were quoted lower by half a point and then buyers came in," he said.

At another desk, the 6% notes were seen at 903/4.

Rumor has it that Sprint employees received an internal memo informing them of a mandatory meeting on Wednesday. It is not known what will be said at the meeting, but the blog-o-sphere has speculated everything from a recently reported change in the employee stock options program to the unveiling of a new WiMAX phone.

Sprint Nextel is an Overland Park, Kan.-based wireless telecommunications provider.

Rite Aid slips ahead of numbers

Rite Aid debt ended unchanged to "a little bit weaker," according to a trader, just a day before the company is set to release its March sales and fourth-quarter results.

The trader called the 9 3/8% notes due 2015 "pretty much unchanged" at 861/2, while the 9½% notes due 2017 closed about half a point softer at 84 1/2.

Another trader pegged the 9 3/8% notes at 86 and the 9½% notes at 85. He also saw the 10 3/8% notes due 2016 at 107.

The Camp Hill, Pa.-based pharmacy chain will hold a conference call to discuss the results at 8:30 a.m. ET on Wednesday.

Lyondell up as loan priced

Lyondell Chemical's bonds improved - although slightly so - after the company priced its new $500 million term loan.

A trader said most of the action in the name was in the company's recent 8% notes due 2017, which he called unchanged to up a quarter-point at 103½ bid, 103¾ offered.

However, he also saw some movement in the 6 5/8% notes due 2017, which closed at 41 bid, 42 offered.

The trader noted that the latter issue was "around the 39 level" last week.

The Netherlands-based chemical maker priced its new bank debt at Libor plus 400 basis points. The loan was issued at 99.00 with a 1½% Libor floor.

Broad market mixed

Elsewhere in the market, General Motors Corp.'s benchmark 8 3/8% notes due 2033 were unchanged, a trader said, at 37¾ bid, 38¾ offered. Another trader also placed the paper around the 38 mark.

Also in the autosphere, a trader said Visteon Corp.'s 8¼% notes due 2010 and 7% notes due 2014 were "still in the high-90s, like 97-ish."

Away from that arena, Washington Mutual Inc.'s bank seniors, such as the 5.55% notes due 2010, were "for the most part unchanged," the trader said, at 46½ bid, 47. The "holdco" seniors were "marginally better," the 4.20% note due 2010 at 103 bid, 103¾ offered and the 5¼% notes due 2017 at 105¼ bid, 105½ offered.

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