Retail firms, coal slips; Caesars comes off of mid-week highs; NII Holdings debt holds ground

By Stephanie N. Rotondo

Phoenix, April 24 - The distressed debt market was mixed during Thursday's session, though a trader noted that there was "not a lot of activity in the distressed world."

Still, the retail sector was inching higher, on no specific news. The coal space, however, was drifting lower.

After gaining in the previous session - following news it was making a bid to build a $750 million casino complex in Upstate New York - Caesars Entertainment Corp. debt "took a breather," ending the day a touch softer.

NII Holdings Inc. was also taking a break from its recent run-up. Traders saw the bonds ending the day unchanged to off slightly.

Overall, the focus remained on new high-yield bond issues, with nearly $800 million of new debt getting priced during the session, not counting euro-denominated deals.

Retail trades up

Retailers were moving higher in Thursday trading, though on no fresh news to act as a catalyst.

A trader saw J.C. Penney Co. Inc.'s 6 3/8% notes due 2036 putting on over 2 points to end around 731/2.

The trader noted that the gain was only in a single trade.

RadioShack Corp.'s 6¾% notes due 2019 were also firmer, gaining a point to close around 38.

Another gainer was Toys 'R' Us Corp.'s 7 3/8% notes due 2018, which rose 1½ points to 73¾ bid, according to one market source.

Claire's Stores Inc. bucked the day's trend, however, as the 8 7/8% notes due 2019 held steady at 841/4.

Coal names slip

Coal names were dipping on Thursday.

One trader saw Walter Energy Inc.'s 9 7/8% notes due 2020 falling over a point to 66. The trader also saw Alpha Natural Resources Inc.'s bonds coming in, the 6¼% notes due 2021 ending off a point at 74¾ and the 6% notes due 2019 slipping almost a point to 77.

Another market source pegged Alpha Natural's 6¼% notes at 74¾ bid as well, but deemed that down over 2 points.

Caesars gives back gains

Caesars Entertainment gave back some of the gains earned on Wednesday.

A trader called the 10% notes due 2018 off a touch at 461/4. The 9% notes due 2020 were also slightly weaker at 85 7/8.

The 8½% notes due 2020 dipped to 84 7/8.

Caesars is answering New York Governor Andrew M. Cuomo's call for casino development in the Upstate region. The company has reportedly made a bid to build a $750 million casino complex, including shops and restaurants, on a 120-acre parcel in Woodbury, N.Y.

Only four licenses are available, however, with a steep application fee of $1 million. Caesars is said to be competing against at least three other bidders.

NII takes a break

NII Holdings' recent run-up came to a halt Thursday, but the bonds managed to finish the session mostly unchanged.

A trader said the 7 5/8% notes due 2021 and the 8 7/8% notes due 2019 were holding in at 30 5/8 and 473/4, respectively.

But the 10% notes due 2016 traded off nearly half a point to 40 7/8.

Just as there was no news to cause the recent surge in the debt, there was no fresh news to bring it down either.

Market ends mixed

Elsewhere in the distressed space, a trader said Momentive Performance Materials Inc.'s 9% notes due 2021 gained over half a point to close around 76 3/4.

Another trader echoed that level, stating "they traded up a little bit."

Also higher were iPayment Inc.'s 10¼% notes due 2018, which put on half a point to 701/4.

A trader said Global Geophysical Services Inc.'s 10½% notes due 2017 were trading around 56. The trader also said that Energy Future Holdings Corp.'s 10% senior notes due 2020 were "a touch weaker" at 1061/4.

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