Distressed debt rebounds in volatile trading, late-day surge; Momentive, Clear Channel up

By Stephanie N. Rotondo

Phoenix, June 6 - A late-day surge helped the distressed debt market gain some ground on Thursday, after being down for about a week.

The end-of-the-day improvement was attributed to a rise in the equity markets.

"There were some things that were bouncing around," a trader said of the "volatile" trading day. While some names stayed soft, others were rallying.

Momentive Performance Materials Inc., for instance, was up by the end of the day. One trader said the 9% notes due 2021 spent most of the session in an 88 to 88½ range, only to go out around 90 at the close.

However, another trader said the paper was off over 3 points at 88.

Exide Technologies Inc.'s 8 5/8% notes due 2018 meantime were unchanged to slightly softer, depending upon whom you asked. One trader pegged the debt at "plus/minus" 60 "all day," deeming that "about unchanged." But a second trader said the bonds were down almost a point, also around 60.

Elsewhere, Clear Channel Communications Inc.'s LBO bonds - the 10¾% and 11% notes due 2016, which are currently the object of a tender offer - hit lows in an 89 to 90 context, a trader said, but finished wrapped around 91.

Even Caesars Entertainment Corp.'s 10% notes due 2018 were benefitting from the slightly better tone, ending the day "straddling" 60, which compared to levels around 581/2, a trader said.

A particularly volatile name was NII Holdings Inc., one trader reported, though there was no news out to cause the gyrations.

The trader saw the 7 5/8% notes due 2021 end soft at 78½ bid, 79 offered, while the 10% notes due 2016 were "about unchanged" at 98 bid, 99 offered.

Some names, however, remained weak, like Verso Paper Corp.'s 11¾% notes due 2019, which closed down 3 points at 69, according to a trader.

Also on the downside were Eastman Kodak Co.'s 7% notes due 2013. A trader pegged the paper in a 16-17 context.

And, AMR Corp.'s 6¼% convertible notes due 2016 were seen at 117 versus previous round-lot levels around 120.

© 2015 Prospect News.
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