Caesars revenue slips, bonds mixed; Arch Coal debt weakens on wider loss; Energy Future softer

By Stephanie N. Rotondo

Phoenix, July 30 - Distressed bonds were holding in during Tuesday trading, though investors were focusing their attention elsewhere.

"Nothing was overly active and for the most part [paper] was unchanged," a trader said. He added that there were "some new issues" that were keeping investors busy.

Earnings news was driving several distressed credits, such as Caesars Entertainment Corp. The Las Vegas-based casino operator reported a narrower loss for the second quarter, but revenues were down.

Market sources, however, gave mixed reviews on how the company's debt did during the trading session.

Arch Coal Inc. also put out its quarterly report. The coal company posted a wider loss for the quarter, sending the bonds downward. As for the rest of the coal sector, it was unchanged to weaker, depending on whom you asked.

In upcoming earnings, Energy Future Holdings is scheduled to report on Friday. The market is also awaiting word on the company's restructuring plans, as a large November maturity looms.

Caesars' so-so earnings

A trader deemed Caesars' debt mixed on the day after the company reported its second quarter results.

The trader saw the 10% notes due 2018 inching up slightly to 543/4, while the 11½% notes due 2017 came off half a point to end around 104.

Another market source pegged the 2018 paper at 55¾ bid, up half a point.

A third source called the 10% notes "about unchanged" around 55.

Caesars posted a net loss of $212.2 million, compared to $241.7 million the year before.

The previous year's loss was due in part to a $101 million writedown on land owned in Macau.

Fewer gambling guests were the cause of the loss, the company said.

Sales were down 0.3% to $2.16 billion.

Arch slips on wider loss

A wider loss at St. Louis-based coal producer Arch Coal did little to help the company's debt on Tuesday.

One trader called the 7% notes due 2019 down over a point at 82 3/8. Another trader placed the issue at 821/2, "down about a point."

Despite the loss, the rest of the sector was seen holding its ground for the most part.

A market source called Alpha Natural Resources Inc.'s 6¼% notes due 2019 off by half a point at 841/2. Another trader said the 6% notes due 2019 were "about unchanged" around 86.

For the quarter, Arch Coal reported an adjusted net loss of $60.5 million, or 29 cents per share. That compared to a loss of $22.1 million, or 10 cents per share, a year ago.

The company blamed a decline in price for metallurgical coal for the wider loss.

Revenues dropped 21% to $766.3 million.

Energy Future flickers

Energy Future's bonds were coming off a touch ahead of the company's earnings release on Friday.

A trader saw the 10% notes due 2020 falling over half a point to 108 3/8. Another trader said the issue was off half a point at 1081/2.

The second trader also saw the 11½% notes due 2020 linked to the Texas Competitive Electric Holdings Co. unit at 75 bid, 76 offered, which he called unchanged.

Energy Future Holdings currently trying to figure out how to restructure a mound of debt ahead of a November maturity. Previous plans to shed debt failed, including a plan to separate the unregulated Texas Competitive unit from the rest of the company. Energy Future said in a regulatory filing in April that to do so would mean a $2 billion cash tax liability for the company, as well as a potential tax event for the parent.

But a new plan is reportedly in the works, as creditors have begun talks with Centerview Partners LLC and Akin Gump Strauss Hauer & Feld LLP.Caesars revenue slips, bonds mixed; Arch Coal debt weakens on wider loss; Energy Future softer

By Stephanie N. Rotondo

Phoenix, July 30 - Distressed bonds were holding in during Tuesday trading, though investors were focusing their attention elsewhere.

"Nothing was overly active and for the most part [paper] was unchanged," a trader said. He added that there were "some new issues" that were keeping investors busy.

Earnings news was driving several distressed credits, such as Caesars Entertainment Corp. The Las Vegas-based casino operator reported a narrower loss for the second quarter, but revenues were down.

Market sources, however, gave mixed reviews on how the company's debt did during the trading session.

Arch Coal Inc. also put out its quarterly report. The coal company posted a wider loss for the quarter, sending the bonds downward. As for the rest of the coal sector, it was unchanged to weaker, depending on whom you asked.

In upcoming earnings, Energy Future Holdings is scheduled to report on Friday. The market is also awaiting word on the company's restructuring plans, as a large November maturity looms.

Caesars' so-so earnings

A trader deemed Caesars' debt mixed on the day after the company reported its second quarter results.

The trader saw the 10% notes due 2018 inching up slightly to 543/4, while the 11½% notes due 2017 came off half a point to end around 104.

Another market source pegged the 2018 paper at 55¾ bid, up half a point.

A third source called the 10% notes "about unchanged" around 55.

Caesars posted a net loss of $212.2 million, compared to $241.7 million the year before.

The previous year's loss was due in part to a $101 million writedown on land owned in Macau.

Fewer gambling guests were the cause of the loss, the company said.

Sales were down 0.3% to $2.16 billion.

Arch slips on wider loss

A wider loss at St. Louis-based coal producer Arch Coal did little to help the company's debt on Tuesday.

One trader called the 7% notes due 2019 down over a point at 82 3/8. Another trader placed the issue at 821/2, "down about a point."

Despite the loss, the rest of the sector was seen holding its ground for the most part.

A market source called Alpha Natural Resources Inc.'s 6¼% notes due 2019 off by half a point at 841/2. Another trader said the 6% notes due 2019 were "about unchanged" around 86.

For the quarter, Arch Coal reported an adjusted net loss of $60.5 million, or 29 cents per share. That compared to a loss of $22.1 million, or 10 cents per share, a year ago.

The company blamed a decline in price for metallurgical coal for the wider loss.

Revenues dropped 21% to $766.3 million.

Energy Future flickers

Energy Future's bonds were coming off a touch ahead of the company's earnings release on Friday.

A trader saw the 10% notes due 2020 falling over half a point to 108 3/8. Another trader said the issue was off half a point at 1081/2.

The second trader also saw the 11½% notes due 2020 linked to the Texas Competitive Electric Holdings Co. unit at 75 bid, 76 offered, which he called unchanged.

Energy Future Holdings currently trying to figure out how to restructure a mound of debt ahead of a November maturity. Previous plans to shed debt failed, including a plan to separate the unregulated Texas Competitive unit from the rest of the company. Energy Future said in a regulatory filing in April that to do so would mean a $2 billion cash tax liability for the company, as well as a potential tax event for the parent.

But a new plan is reportedly in the works, as creditors have begun talks with Centerview Partners LLC and Akin Gump Strauss Hauer & Feld LLP.

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