Weakness seen in NII holdings' debt; Clear Channel mixed post-exchange news; market higher

By Stephanie N. Rotondo

Phoenix, Nov. 26 - A distressed debt trader said the market continued to "creep higher" on Tuesday despite it being "slow, volume-wise."

The most actively traded distressed issues continued to be those of NII Holdings Inc. One trader said there was "a lot of activity" in the name, with bonds falling 2 to 3 points on the day.

Clear Channel Communications Inc. was meantime also on the busier side, just one day after the company announced a private exchange offer for notes maturing in 2016.

Away from those names, a trader said Caesars Entertainment Corp.'s 10% notes due 2018 were down half a point at 46. He also deemed Exide Technologies Inc.'s 8 5/8% notes due 2018 off a point at 741/2.

Another trader echoed that level.

And, Verso Paper Corp.'s 11¾% notes due 2019 held in at 691/2, though its 8¾% notes due 2019 fell a point to 26.

More pain for NII Holdings

The weak trend in NII Holdings' debt continued into Tuesday trading, as bonds were seen off as much as 3 points on the day.

A trader said the 7 5/8% notes due 2021 were off almost 3 points at 401/2. The 8 7/8% notes due 2019 lost "2 and change" points to end around 43 3/8 and the 10% notes due 2016 declined a deuce to 541/2.

There hasn't been any fresh news out on the Reston, Va.-based provider of Nextel mobile phone service in Latin America since it released earnings at the end of October. But the results were not all that pleasant and the company said it had lost a significant number of subscribers as it upgraded its networks.

The upgraded networks would not carry lines from older networks, resulting in at least some of the losses.

Additionally, there has been talk that the company - which is believed to not have enough funds to finish its capital expenditure program this year - is currently cash-flow negative.

Clear Channel mixed

Clear Channel's 10¾% and 11% toggle notes due 2016 were busy but mixed on Tuesday, just one day after the company launched a private exchange offer for the issues.

A trader called the 10¾% notes up a touch at par 3/4. The 11% notes also ended at that level, but were deemed marginally softer.

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 due 2021 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.

© 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.