| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2014 > News item |
Distressed debt up in midweek trading; NII Holdings, Caesars end mixed; MagnaChip bonds softer
By Stephanie N. Rotondo
Phoenix, Aug. 20 – The distressed debt market was trending toward the firm side on Wednesday, though not all names were following along in kind.
The recently topical NII Holdings Inc. bonds, for instance, were unchanged to weaker. The debt had plummeted last week on the back on poor earnings and a bankruptcy warning, but began to climb higher on Monday when the company announced it was selling its Chilean subsidiary.
However, the notes gave back some of those gains on Tuesday and come Wednesday, the 11 3/8% notes due 2019 continued to fall, losing over a point to end at 67¾, according to a trader.
But, the 10% notes due 2016 held steady at 28.
Caesars Entertainment Corp. was meantime mixed on the day. A trader said both the 10% notes due 2018 and the 10¾% notes due 2016 came in to end at 27¼ and 42½, respectively. But the 8½% notes due 2020 and the 11¼% notes due 2017 inched higher, closing at 80¼ and 81, respectively.
MagnaChip rating lowered
MagnaChip Semiconductor Corp. was downgraded by Moody’s Investors Service on Wednesday, as the company has yet to file its quarterly statements.
Moody’s cut the corporate family rating to Caa1 from B2. The rating agency also dropped the 6 5/8% notes due 2021 to Caa1 from B2.
On the news, only small pieces of the bonds were trading, but they were weaker on the day.
A market source saw the issue trading with a 98 handle, which compared to a par to 101 context on Tuesday.
In January, the Korean chipmaker postponed releasing its fourth-quarter results for 2013. In March, the company said an internal audit had found some issues with its financial statements for the years 2001 through 2013 and that it would have to restate the figures.
Moody’s attributed its actions to the delayed filings and noted that the $225 million of 6 5/8% notes could be accelerated if the earnings are not filed properly by Feb. 14, 2015.
© 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.