EXCO debt rises as CEO resigns; investors remain focused on Caesars, NII Holdings, J.C. Penney

By Stephanie N. Rotondo

Phoenix, Nov. 21 - It was a mixed day for distressed bonds, even as the equity market hit new record highs.

Most of the trading in the space was from the typical go-to names of late, such as Caesars Entertainment Corp., NII Holdings Inc. and J.C. Penney Co. Inc. However, EXCO Resources Inc. was on the active side - and better - after the company announced the departure of its chief executive officer.

A trader said the 7½% notes due 2018 traded as high as 97 during the day's session, though they ended just over 96. Still, he said that the debt was up a deuce from the previous day.

News of Douglas H. Miller's resignation from his post as CEO and chairman seemed to be "quite ducky" for investors, the trader said.

Jeffrey D. Benjamin was appointed as the company's non-executive chairman. Benjamin is a long-time investor in the company and was also on the board of directors.

Additionally, the Dallas-based mining company said that the board had approved a $368 million capital spending budget for 2014, the details of which will be released on Dec. 10.

Caesars, NII, Penney stay busy

Caesars' 10% notes due 2018 remained busy and weaker on Thursday.

A trader said the debt fell another point to 471/2. A second market source called the bonds down almost a point at 47¾ bid.

NII Holdings' notes also continued to be active and continued their downward spiral. A trader saw the 7 5/8% notes due 2021 dropping over a point to 443/4, while the 8 7/8% notes due 2019 declined 2 points to 471/2.

Another trader saw the 7 5/8% notes fall to 441/2.

In J.C. Penney paper, a trader said the 7.65% notes due 2016 traded off by over a point to close at 891/2. But another source saw the 5.65% notes due 2020 rising half a point to 79½ bid.

Yet another source said the debt was "not quite as active" as it has been, deeming the bonds "basically unchanged."

The retailer reported earnings on Wednesday, showing a wider loss and a nearly 5% decline in same-store sales. However, the third quarter ended with the company's first monthly sales gain since 2011.

Among other distressed issues, Colt Defense LLC's 8¾% notes due 2017 were lifted by 1½ points to 861/2.

ADT Corp.'s 4 1/8% notes due 2023 meantime slipped almost 2 points to 88 1/8.

And, Momentive Performance Materials Inc.'s 11½% notes due 2016 dipped a point to 701/2.

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