Clear Channel quiets down, gives up gains; Exide debt dips; Alcatel hangs in ahead of earnings

By Stephanie N. Rotondo

Phoenix, April 24 - The distressed debt market dipped a bit in midweek trading, following the trend set by the equities.

Clear Channel Communications Inc. "quieted down some," a trader said, after being one of the most actively traded issues in the previous session. The bonds were seen unchanged to off slightly from Tuesday's highs.

Exide Technologies Inc. was meantime weaker by as much as 4 points, depending upon whom you asked. One trader said the decline was due to a story regarding the closure of a battery recycling plant.

Elsewhere, Alcatel-Lucent USA Inc. held in there despite the overall softer market. The French telecommunications company is expected to report earnings later this week.

Clear Channel loses ground

Clear Channel paper was coming off of Tuesday's highs during Wednesday trading, though overall volume in the name was less than that seen in the previous session.

A trader said the debt was "for the most part unchanged, maybe a little bit softer," seeing the 10¾% notes due 2016 in an 83½ to 84 context.

Another trader saw the issue at 83 5/8, down nearly half a point.

On Tuesday, the San Antonio-based multimedia company's bonds were trading actively and better on buzz the company was in talks with holders of its LBO notes. However, one source told Prospect News that he was not sure if the chatter was accurate.

Exide declines

A trader called Exide Technologies' 8 5/8% notes due 2018 down 4 points on the day, closing at 74 bid, 75 offered.

Another trader pegged the notes at 761/2, down only 2¾ points.

The first trader said he thought he had heard some news regarding a battery recycling plant closure, which might have triggered the dip.

Exide is a Milton, Ga.-based battery manufacturer and recycler.

Alcatel prepares earnings release

Alcatel-Lucent paper was unchanged to slightly better on Wednesday, as the company prepared to report earnings on Friday.

One market source placed the 6.45% notes due 2029 at 77¾ bid, up nearly a point. Another trader said the debt was unchanged and "not really all that active," trading around 77.

NII notes firm

NII Holdings Inc.'s bonds were on the rise, though on new fresh news.

A trader saw the 7 5/8% notes due 2021 moving up "almost a point" to 831/2, while the 10% notes due 2016 gained 1¼ points to end at par 1/4.

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

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