AMR debt hits par on U.S. Airways merger buzz; Dex plans vote for SuperMedia deal; PDVSA falls

By Stephanie N. Rotondo

Phoenix, Feb. 11 - Distressed bonds were taking a backseat to new issues on Monday, but that didn't stop some names from getting a piece of the action.

AMR Corp.'s debt has been on the rise of late, as rumors circulate that a merger with U.S. Airways could be announced this week. On Monday, the bonds were seen hitting par.

Dex One Corp. was meantime either "up a couple" or "not really any different," depending upon whom you asked. The company's stockholders are gearing up to vote on a proposed merger with SuperMedia Inc. Should the merger fail, the company said it is planning a prepackaged bankruptcy filing.

In emerging markets, Petroleos de Venezuela SA was topping the volume charts. The Venezuelan-based state oil company's debt was mostly weaker on the day, as the country devalued the bolivar.

AMR up on merger chatter

Bankrupt AMR - the Fort Worth-based parent of American Airlines - is reportedly meeting with U.S. Airways board on Wednesday to hammer out details of a potential merger.

Chatter has it that the companies want to get an agreement figured out fast, as a confidentiality agreement with some bondholders ends on Friday.

Speculation that the deal will occur has been giving AMR bonds a boost of late. On Monday, the benchmark 6¼% convertible notes due 2014 were seen hitting par bids.

Dex to vote on merger

Dex One has scheduled a special stockholders meeting for March 13 to vote on a proposed merger with SuperMedia.

A trader said Dex's 12% PIK notes due 2017 were "up a couple points" at 40½ bid, 41 offered.

But another trader said the issue was "not really any different," also around 401/2.

Thus far, a majority of senior lenders for both companies have agreed to support the combination. However, if either company fails to receive unanimous support from the remainder of its lenders, the deal might be pushed through via a prepackaged bankruptcy.

Dex is a Cary, N.C.-based phonebook publisher.

PDVSA bonds dip

PDVSA bonds were mostly weaker on Monday as the country devalued its currency.

"All the top volume traders were PDVSA," a trader said.

The 9% notes due 2021 were the only ones moving to the upside, ending up a fraction at 981/2.

All other issues were down: the 8½% notes due 2017 fell a touch to par 1/2, while the 5¼% notes due 2017 slipped about half a point to 89 3/8. The 5 3/8% notes due 2027 fell nearly a point to 73¼ and the 9¾% notes due 2035 lost almost 1½ points, closing at 99 7/8.

Venezuela devalued the bolivar 32% compared to the dollar, leaving the exchange rate at 6.3 bolivars per dollar. The devaluation - aimed at shoring up budget deficits by generating more local currency from oil exports - is the fifth to occur in nine years.

Meanwhile, PDVSA also reportedly admitted that its massive uptick in dollar-denominated debt was aimed at upholding the Transaction System for Foreign Currency Denominated Securities, an agency created in June 2010 to replace the swap market.

Ambac up, Ameren down

Elsewhere in the distressed market, traders were seeing continued gains in Ambac Financial Group Inc.'s bonds.

One trader saw the debt hitting a high of 56, a level echoed at another desk.

"Those keep moving up," the second trader said.

Meanwhile, Ameren Energy Generating Co.'s bonds were off 4 to 5 points, according to a trader.

The 7.95% notes due 2032 were quoted at 50 bid, 51 offered, as the 7% notes due 2018 were pegged at 55 bid, 56 offered.AMR debt hits par on U.S. Airways merger buzz; Dex plans vote for SuperMedia deal; PDVSA falls

By Stephanie N. Rotondo

Phoenix, Feb. 11 - Distressed bonds were taking a backseat to new issues on Monday, but that didn't stop some names from getting a piece of the action.

AMR Corp.'s debt has been on the rise of late, as rumors circulate that a merger with U.S. Airways could be announced this week. On Monday, the bonds were seen hitting par.

Dex One Corp. was meantime either "up a couple" or "not really any different," depending upon whom you asked. The company's stockholders are gearing up to vote on a proposed merger with SuperMedia Inc. Should the merger fail, the company said it is planning a prepackaged bankruptcy filing.

In emerging markets, Petroleos de Venezuela SA was topping the volume charts. The Venezuelan-based state oil company's debt was mostly weaker on the day, as the country devalued the bolivar.

AMR up on merger chatter

Bankrupt AMR - the Fort Worth-based parent of American Airlines - is reportedly meeting with U.S. Airways board on Wednesday to hammer out details of a potential merger.

Chatter has it that the companies want to get an agreement figured out fast, as a confidentiality agreement with some bondholders ends on Friday.

Speculation that the deal will occur has been giving AMR bonds a boost of late. On Monday, the benchmark 6¼% convertible notes due 2014 were seen hitting par bids.

Dex to vote on merger

Dex One has scheduled a special stockholders meeting for March 13 to vote on a proposed merger with SuperMedia.

A trader said Dex's 12% PIK notes due 2017 were "up a couple points" at 40½ bid, 41 offered.

But another trader said the issue was "not really any different," also around 401/2.

Thus far, a majority of senior lenders for both companies have agreed to support the combination. However, if either company fails to receive unanimous support from the remainder of its lenders, the deal might be pushed through via a prepackaged bankruptcy.

Dex is a Cary, N.C.-based phonebook publisher.

PDVSA bonds dip

PDVSA bonds were mostly weaker on Monday as the country devalued its currency.

"All the top volume traders were PDVSA," a trader said.

The 9% notes due 2021 were the only ones moving to the upside, ending up a fraction at 981/2.

All other issues were down: the 8½% notes due 2017 fell a touch to par 1/2, while the 5¼% notes due 2017 slipped about half a point to 89 3/8. The 5 3/8% notes due 2027 fell nearly a point to 73¼ and the 9¾% notes due 2035 lost almost 1½ points, closing at 99 7/8.

Venezuela devalued the bolivar 32% compared to the dollar, leaving the exchange rate at 6.3 bolivars per dollar. The devaluation - aimed at shoring up budget deficits by generating more local currency from oil exports - is the fifth to occur in nine years.

Meanwhile, PDVSA also reportedly admitted that its massive uptick in dollar-denominated debt was aimed at upholding the Transaction System for Foreign Currency Denominated Securities, an agency created in June 2010 to replace the swap market.

Ambac up, Ameren down

Elsewhere in the distressed market, traders were seeing continued gains in Ambac Financial Group Inc.'s bonds.

One trader saw the debt hitting a high of 56, a level echoed at another desk.

"Those keep moving up," the second trader said.

Meanwhile, Ameren Energy Generating Co.'s bonds were off 4 to 5 points, according to a trader.

The 7.95% notes due 2032 were quoted at 50 bid, 51 offered, as the 7% notes due 2018 were pegged at 55 bid, 56 offered.

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