Clear Channel debt up with market; Sprint expands 4G, notes gain; OPTI bonds 'fairly active'

By Stephanie N. Rotondo

Portland, Ore., July 12 - Distressed bonds were "grinding higher," a trader reported Monday.

"The market was up half a point to a point across the board," he added. However, he lamented the lack of volume.

"It's been a brutal go of it recently," he said.

Clear Channel Communications Inc.'s bonds were up with the market, gaining as much as a point on the day. There wasn't any news out specific to the company, but one trader did note that the annual gathering of media moguls - held by Allen & Co. - was just last weekend.

Sprint Nextel Inc. was also on the gaining side. Those gains came as the wireless telecommunications provider announced the launch of its fourth-generation wireless service in seven new markets.

In the oil arena, OPTI Canada Inc.'s debt was "fairly active" and better, according to a trader. And, as per the usual of late, Anadarko Petroleum Corp. continued to dominate trading.

Clear Channel up with market

Clear Channel Communications' debt headed up in line with the general trend of the market.

A trader quoted the 10¾% notes due 2016 at 73 bid, 74 offered. When asked if that was better from Friday levels, he said, "Everything is better. I don't think anything went down today."

The trader also noted that there wasn't any news out on the San Antonio-based multimedia company, but that the recent media mogul conference in Sun Valley - an annual event hosted by Allen & Co. - might have resulted in some investor interest.

"It's like the biggest deal of the year [for the sector]," he said. "There are always mergers that come out of that, or other deals."

At another desk, a source agreed that Clear Channel bonds were up, seeing the 11% notes due 2016 at 72 bid, 72½ offered. That was about half a point to a point better than previous levels, the source said.

Sprint gains as 4G expanded

Sprint Nextel bonds were also seen heading upward, sources reported. The gain came as the company announced it had launched 4G wireless service in seven new markets, including Syracuse, N.Y., Merced, Calif., and Eugene, Ore.

One trader called the bonds up half a point, placing the 6 7/8% notes due 2028 at 83¾ and the 6.90% notes due 2019 at 921/2.

Another called the 6 7/8% notes the most active of the Sprint issues, seeing the notes close around 831/2. He also saw the 6.90% notes at that 92½ level, while the 8¾% notes due 2032 ended at 96½ bid, 97 offered.

"All of those are up about a half," he said.

The new markets added to Sprint's 4G network mark the first in New York and California, according to a press release. All told, Overland Park, Kan.-based Sprint offers 4G service in 43 markets and intends to add many more - including in Los Angeles, New York City and Miami - by the end of the year.

Also, Sprint's debt might have been bolstered by reports that consumer magazine Consumer Reports was not recommending the new version of Apple's iPhone, as the new system has resulted in a flaw that degrades signal reception.

Currently, the iPhone is only available through AT&T, though rumor has it Verizon will add it to its line up by late 2010 or early 2011.

OPTI bonds 'fairly active'

OPTI Canada's 8¼% notes due 2014 were "a fairly active one," according to a trader.

The trader saw the notes firming half a point to three-quarters, closing around 891/2. Another trader echoed that level.

There was no news out on the Calgary, Alta.-based oil company. However, the company is slated to release its second quarter results on Thursday.

Anadarko still topping charts

Anadarko Petroleum continued to reign as the top trader in the secondary space, according to traders.

With total trading in that arena "just crossing the $1 billion mark," a trader said that volume would have been more like $800 million without any Anadarko issues.

A trader called the Houston-based oil company's bonds up somewhere in the neighborhood of a point, its 6.45% notes due 2036 at 88 and its benchmark 5.95% notes due 2016 at 951/4.

Last week, Anadarko debt was consistently gaining 1 to 2 points per day, even as the company rejected BP plc's request for funds to cover cleanup costs associated with the Deepwater Horizon explosion that resulted in an oil leak in the Gulf of Mexico.

On Monday, BP - Anadarko's joint operating partner at the rig that exploded April 20 - was attempting to seal the well, which had been gushing freely into ocean waters over the weekend.

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