Clear Channel launches exchange offer, bonds gain; Overseas Shipholding debt rises; NII weaker

By Stephanie N. Rotondo

Phoenix, Nov. 25 - Distressed debt "continues to creep higher," a trader said Monday.

Clear Channel Communications Inc. bonds were moving upward after the company announced a private exchange offer for its 10¾% and 11%/11¾% toggle notes due 2016. The company also said it was seeking to extend its term loans B and C - which come due January 2016 - into July 2019.

Overseas Shipholding Group Inc. was also on the rise. A trader said there was talk circulating that an equity committee might be formed.

But while the market was generally positive, NII Holdings Inc.'s debt continued to be under pressure. A trader said he was hearing chatter that the company "may be cash-flow negative."

Clear Channel launches exchange

Clear Channel announced a private exchange offer for its 10¾% and 11% toggle notes due 2016 on Monday.

A trader said the bonds were active post-news, seeing both issues "up a few points" to 102.

The trader also saw the 14% notes due 2021 put on a point to close around 92.

Under the terms of the tender, those holders that participate by the early deadline of Dec. 9 will receive $1,100 of new 14% notes plus $20 in cash per each $1,000 of notes validly tendered. After the early deadline, holders will have until Dec. 23 to participate. Those that come in after the early deadline will receive $1,050 of new notes and $20 in cash.

Clear Channel is a San Antonio-based multimedia company.

OSG could form equity group

A trader said that Overseas Shipholding Group was stronger and that there was "talk of an equity committee being formed."

The New York-based shipping company filed for Chapter 11 protections on Nov. 14.

"There appears to be plenty of value," the trader said, adding there was a buyer of the bonds - including the 8 1/8% notes due 2018, the 7 ½% notes due 2024 and the 8¾% notes due 2013 - at 101.

NII paper weakens

NII Holdings' bonds continued to decline in Monday trading.

One trader said the debt was "weaker again," seeing the 7 5/8% notes due 2021 around 43 and the 10% notes due 2016 at 56 bid, 57 offered.

"There are some people saying they might be cash-flow negative," he commented.

Another trader said the issues were "active again and slightly weaker." He pegged the 7 5/8% notes at 43½ and the 10% notes at 561/2.

NII is a provider of Nextel mobile phone service in Latin America. The company is based in Reston, Va.

TXU rises

Energy Future Holdings Corp.'s 10% notes due 2020 were trading higher, according to a trader, as "people are getting more comfortable with the story.

"The make-whole is just kind of gravy on that bond," he added.

He placed the debt at 1061/2.

Energy Future, or TXU as it is more commonly referred to, is a Dallas-based power producer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.