NII Capital's new issue not a boon for other issues; AMR bonds rising ahead of merger meeting

By Stephanie N. Rotondo

Phoenix, Feb. 12 - New issues were again taking focus on Tuesday, but some distressed bonds remained topical.

NII Capital Corp., which priced a new deal on Monday, was trading actively. However, a trader said the "old debt" was not seeing much benefit from the new issue.

AMR Corp. meantime continued to gain altitude. The company is set to meet with U.S. Airways on Wednesday, presumably to hammer out details regarding a potential merger.

No boost for NII Capital

NII Capital's new issue - which came via the company's NII International Telecom SCA subsidiary - was gaining ground during Tuesday trading, but that was not necessarily helping the older issues, according to traders.

One trader saw the 7 5/8% notes due 2021 inch up half a point to 711/2, while the 10% notes due 2016 held in at 90 3/8.

The 8 7/8% notes due 2019 were seen slipping slightly to 751/4.

Another trader said the structure was "somewhat active" following the pricing of the $750 million issue of 11 3/8% notes due 2019.

Both traders placed the new issue around 104, versus par pricing on Monday.

But, "the old bonds didn't necessarily benefit from the strength in the new deal," the second trader said.

The trader quoted the 7 5/8% notes at 71 bid, 72 offered and the 10% notes at 90 bid, 91 offered, both unchanged.

Proceeds from the new issue will be used for general corporate purposes.

NII Capital is a Reston, Va.-based wireless communications services provider.

AMR up pre-merger talks

A trader said AMR's benchmark 6¼% convertible notes due 2014 "keep ticking up," seeing the issue trading at par ½ bid, 101 offered.

Another trader placed the notes at par ½ as well.

"People are talking about par plus interest eventual value," the second trader said.

The bankrupt airline's stock ended the day down 19.5 cents, or 13.45%, at $1.255.

Fort Worth-based AMR is scheduled to meet with the board of U.S. Airways on Wednesday to discuss a potential merger. The companies likely want to hammer out details ahead of the Friday expiration of a bondholder confidentiality agreement.

PDVSA slips, CEDC steady

In other distressed names, a trader saw Petroleos de Venezuela SA's 8½% notes due 2017 falling 3 points to 971/2.

The 9% notes due 2021 were down almost a deuce at 963/4.

At another desk, a trader said Central European Distribution Corp.'s 9 1/8% notes due 2016 were "kind of where they have been," trading around 61.

© 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.