Nokia bonds soar amid asset sale news; Syria fears mount but distressed space rises; OGX firms

By Stephanie N. Rotondo

Phoenix, Sept. 3 - The first day back from the Labor Day holiday was a quiet one for the distressed debt markets, especially as investors were keenly focused on Nokia Corp.

"Nokia was the big news," one trader said, referring to news that Microsoft Corp. was buying the Finnish-telecommunications company's cell phone units in a $7.2 billion all-cash deal. "The bonds were up considerably."

"Nokia had a good day," another trader said, calling the debt up generally 10 to 15 points.

The 5 3/8% notes due 2019 hit highs with a 105 handle, but settled back around a 101 to 103 context. The 6 5/8% notes due 2039 rose to levels around par and ended the day around 97.

That compared to previous levels in the mid- to high-80s, one trader noted.

But away from Nokia, activity was on the thin side, though most names were ticking higher, even on mounting concerns about the situation in Syria.

"There is a lot of apprehension," a trader said, about how the United States might respond to the Assad regime's use of chemical weapons. He added that whatever the government resolves to do will still take another week or so to fully flush out, which is "going to keep things in limbo."

Among domestic names, ATP Oil & Gas Corp.'s 11 7/8% notes due 2015 were seen trading at 75 cents on the dollar. Edison Mission Energy paper meantime edged up to 641/2.

AMR Corp.'s benchmark 6¼% convertible notes due 2014 were "up another couple of points" at 102, according to a trader.

He said he expected the strength was due to news out on Friday regarding a federal judge's fast-tracking of the anti-trust lawsuit the Justice Department previously served the company and its merger partner, US Airways.

And, J.C. Penney Co. Inc.'s 6 3/8% notes due 2036 were up a point, another trader said, ending around 70, while a second source called the 5.65% notes due 2020 up a touch at 77¼ bid.

In the emerging market space, OGX Petroleo & Gas Participacoes SA's 8½% notes due 2018 put on a point, closing at 193/4. The bonds have been rising recently on the belief that the company intends to release a restructuring plan in the coming weeks.

Creditors have already hired Rothschild as an advisor and OGX has secured The Blackstone Group LP.

© 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.