NII Holdings hires advisers, bonds decline; Walter Energy seeks to amend terms, refinance debt

By Stephanie N. Rotondo

Phoenix, March 10 - NII Holdings Inc. kicked off the week as the most actively traded name in the distressed debt market.

The activity came on the heels of news the company has hired advisers to evaluate its strategic alternatives. The bonds ended the day with a weak tone.

Also weaker were Walter Energy Inc.'s notes. The debt was pressured by word the company was looking to refinance some bank debt.

The rest of the distressed space was generally lower as well. A trader said RadioShack Corp.'s 6¾% notes due 2019 drifted in again to 461/2.

He said the weakness was still due to the company's most recent earnings and store closure announcements.

Another trader, however, said the issue was up 1½ points at 47.

NIHD hires advisers

A trader said NII Holdings' debt "came under pressure" as the company announced it had hired Rothschild Inc. and UBS Investment Bank to evaluate its long-term liquidity options.

The company also said it was reviewing its strategic alternatives.

The trader saw the 7 5/8% notes due 2021 falling 1½ points to 35¾ on "pretty heavy volume." The 10% notes due 2016 slipped just half a point to 50, he said.

However, the 8 7/8% notes due 2019 were deemed up nearly 3 points at 501/4.

Another trader agreed that the bonds were mixed, seeing the 7 5/8% notes lower at 36.

He called both the 10% and 8 7/8% notes "a little better," both trading around 50.

The Reston, Va.-based provider of Nextel mobile phone service in Latin America reported dismal earnings late February, warning that its liquidity might not be sufficient to deal with 2015 obligations.

Walter falls on refi plans

Walter Energy was unchanged to weaker as the company said it was looking to refinance some debt.

A trader said the 9 7/8% notes due 2020 were holding in around 75, on "pretty active" trading. But the 8½% notes due 2021 dropped 2 points to 72.

Another trader deemed the 9 7/8% notes unchanged at 76.

In an 8-K filed with the Securities and Exchange Commission on Monday, the Birmingham, Ala.-based producer of metallurgical coal said that it was looking to amend a credit facility in order to allow for the repayment of its term A facility, without making a pro rata payment on its term B facility.

Once the amendment is secured, the company plans to issue new securities - possibly second-lien or convertible debt - to refinance the bank debt.

Elsewhere in the coal space, Alpha Natural Resources Inc.'s bonds remained soft, following a $27 million Clean Water Act fine the company was levied last week.

A trader said the 6% notes due 2019 were off over half a point at 803/4, while the 6¼% notes due 2021 lost a point to end around 791/2.

Another market source placed the 6¼% notes at 80¼ bid, down over a point.

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