Clear Channel reports wider loss, bonds improve; NII Holdings stays busy, strong post-earnings

By Stephanie N. Rotondo

Phoenix, May 3 - Distressed debt remained strong as the week wound down, though traders lamented the low volume as investors focused on new issues and equities.

Clear Channel Communications Inc.'s bonds were firm to unchanged despite the parent company, CC Media Holdings Inc., posting a wider-than-expected loss late Thursday. The company's sister, Clear Channel Outdoor Holdings Inc., also reported a wider loss.

Meanwhile, NII Holdings Inc. continued to be in focus following the company's own earnings release the day before.

Of other recently topical names, Exide Technologies Inc.'s 8 5/8% notes due 2018 continued to attempt to regain the ground lost in the previous week. A trader called the issue up over a point at 691/4.

Clear Channel up despite numbers

Clear Channel reported earnings late Thursday and the results were below expectations.

Still, the San Antonio-based multimedia company's bonds were moving up nonetheless.

One trader saw the 9½% notes due 2021 rising 1½ points to 993/4. Another trader pegged the 11% notes due 2016 at 88.

"The numbers came out and the bonds were not even all that active," the second trader said. Of the 11% notes, he called them "pretty much in line. Maybe they started out the day a little bit lower and worked their way back up."

For the first quarter, CC Media posted a loss of $203 million, versus a loss of $143.6 million the year before. Revenues declined 1.34% to $1.34 billion.

As for Clear Channel Outdoor, net loss was $74.3 million, or 22 cents per share. That compared to a $43.9 million, or 14 cents per share, loss in the same quarter of 2012.

Revenues were only slightly better than the previous year at $650.2 million.

Analysts polled by Thomson Reuters were expecting a loss of 14 cents per share on revenues of $655 million at the subsidiary.

NII paper remains firm

NII Holdings' debt "continued to be an active one," a trader said, calling the 7 5/8% notes due 2021 "up almost another point."

He placed the issue around 901/2.

Another trader said the debt had gained a point, closing around 903/4.

On Thursday, the Reston, Va.-based provider of Nextel mobile phone service in Latin America reported earnings. For the quarter, NII posted a net loss of $207.5 million, or $1.21 a share, versus a year-earlier profit of $13.6 million, or 8 cents a share. The results were due in part to higher operating expenses as the company looks to expand its 3G networks in Mexico and Brazil and to $230 million in impairment and restructuring charges.

Revenues dropped 13% to $1.41 billion. Operating expenses rose 4.6% to $1.52 billion.

Analysts had been expecting a loss of 65 cents per share on revenues of $1.46 billion.

Subscriptions to the company's Nextel mobile phone service increased by 152,000 during the quarter. Cancellations, or churn, came to 2.59%, compared to 2.07% a year ago.

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