Distressed debt takes breather as high-yield new issues roll in; NII sees second day of gains

By Stephanie N. Rotondo

Phoenix, Dec. 5 - Distressed debt took a backseat to high-yield new issues, a trader said Thursday.

"A lot of deals are pricing here at the end of the day," a trader said. "So people are sitting on their hands."

However, that didn't stop NII Holdings Inc. from getting a big pop.

The Reston, Va.-based provider of Nextel mobile phone service in Latin America had seen its bonds on the downward slide since before it released earnings in late October. On Wednesday, the company's debt reversed course, rising 3 to 4 points with no fresh news to act as a catalyst.

The gains kept coming on Thursday, with the debt putting on as much as 8 points on the day.

A trader said the bonds were "up smartly again," seeing the 7 5/8% notes due 2021 closing up 5 points at 461/2. The 10% notes due 2016 were meantime 4½ points higher at 561/2.

The 7 7/8% notes due 2019 improved the most, gaining just over 8 points to end at 77.

Elsewhere in the distressed space, a trader said Edison Mission Energy's bonds - all of which trade in line with one another - were moving around the 75 mark.

The trader also saw MF Global Futures Ltd.'s 6¼%/8¼% notes due 2016 at 48, which he deemed up 3 points.

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