U.S. Concrete disappoints; Harrah's loses steam; GGP to file reorganization plan; WaMu firms

By Stephanie N. Rotondo and Sara Rosenberg

Portland, Ore., March 26 - Distressed debt trading was once again overshadowed by new issues during Friday trading, according to market sources.

"Most of the focus is on new issues," a trader said, noting that big deals - such as LyondellBasell, Lear Corp., et al - "dominated the week."

Another trader was not as conservative with his words.

"Away from new issues, it has been a complete friggin' waste of time," he said.

The new issue-focus could explain why U.S. Concrete Inc.'s debt did not trade as actively as was expected. A source said on Thursday that he expected volume in the credit to pick up and the bonds to hit 60-plus during Friday's session. However, the bonds saw thin trading and ended about unchanged.

Harrah's Entertainment Inc.'s notes lost some momentum seen over the course of the week. The casino operator's bonds had been steadily climbing higher all week, according to traders, but finished up Friday unchanged.

Meanwhile, General Growth Properties Inc. said it would file its plan of reorganization next week. The plan was expected to be filed by the end of the current week. Still, the company's debt shook it off and seemed largely unaffected by the news.

In other plan filing news, Washington Mutual Inc. paper was seen moving higher. It was expected that the Seattle-based thrift would file its plan Friday, but the day came and went without any news.

Also, General Motors Corp.'s benchmark bonds managed to hold on to the gains incurred during Thursday trading. Still, a trader noted that activity had died down.

U.S. Concrete disappoints

U.S. Concrete bonds missed expectations - at least trading-wise - during the final trading session of the week.

On Thursday, a trader had speculated that 8 3/8% notes due 2014 would be a good-sized trader come Friday and that the debt would hit 60 or above.

But that was not the case, market sources reported.

One trader saw "just odd lots" of the paper moving, "kind of unchanged" at 58 bid, 60 offered.

Another trader said the name was "nothing special, which surprised me, I would have expected more."

The second trader pegged the issue at 591/2, which he deemed "about unchanged."

The Houston-based concrete producer announced Thursday it had secured $18.5 million in short-term liquidity via an amendment to its senior credit facility. The company also noted that it had received commitments for a possible debtor-in-possession facility, should it have to file for Chapter 11 protections.

Harrah's loses steam

After trading rather actively - and somewhat better - in the previous session, Harrah's Entertainment's bonds hit a lull.

"The older low-coupon issues seem to have been running up this week," a trader said. He saw the 5 5/8% notes due 2015 continuing that trend, ending a point better at 661/2. He meantime saw the 5¾% notes due 2017 trading up to around 58.

But another trader thought the paper to be rather unchanged, placing the 6½% notes due 2016 at 64½ bid, 65 offered.

Harrah's is a Las Vegas-based casino operator.

GGP to file plan soon

General Growth Properties' notes were largely unaffected by news the Chicago-based shopping mall operator planned to file its reorganization plan next week.

A trader saw the 8% notes that were to have matured last year at 1111/4, which he called half a point softer. Another trader echoed that level, though he said it was "certainly in the ballpark of where it has been."

The company was expected to file the plan Friday, but said in a court hearing that - due to negotiations with at least three parties - they were not ready to do so.

WaMu better despite lack of plan

Washington Mutual's bank seniors, such as the 5.55% notes due 2010, were up 1 to 1½ points, a trader said, as the market waited for news.

"I thought they were suppose to file their plan today, but I haven't seen anything yet," the trader said, quoting the notes around 46.

Elsewhere in the financial space, a trader said "people are sniffing around" for Lehman Brothers Holdings Inc.' debt. He pegged the bonds generically at 23½ bid, 24 offered.

Another trader saw the benchmark notes at 23 bid, 24 offered, "not all that much changed."

GM holds onto gains

General Motors' 8 3/8% notes due 2033 were "quiet after yesterday's run-up," according to a trader.

He placed the benchmark paper around 38.

Also in the autosphere, the trader said that Visteon Corp.'s 8¼% notes due 2010 and its 7% notes due 2014 were up about 4 points at 96 bid, 97 offered.

However, he noted that there was "not much trading" in the name.

Lyondell CAM still strong

LyondellBasell Industries' pre-petition CAM managed to sustain its recent positive momentum as levels moved up by another few points during market hours, according to traders.

The Netherlands-based polymer, petrochemicals and fuels company's CAM was quoted by one trader at 77 bid, 78 offered up from 75 bid, 76 offered, and by a second trader at 77½ bid, 78½ offered, up from 75½ bid, 76½ offered.

Friday's gain was just a continuation of the trend that has been seen in this name over the past couple of days. For example, on Wednesday, the CAM was quoted around 73¾ bid, 74¾ offered context and on Tuesday it was at 73 bid, 74 offered.

One trader explained that LyondellBasell's CAM has been on the move primarily because strong interest in the paper has been created by a couple of factors.

First, the trader said that there were fewer sellers in the name lately, although he wasn't sure why. One possibility thrown out there was that people were away for Barclays Capital's conference in Arizona, causing supply to dry up this week.

Second, according to the trader, there are a lot of distressed players who have a lot of money to put to work. He explained that guys who already own the CAM may be buying some more, and as people see it moving higher they start to give it attention, creating even more demand.

Lastly, speculation is that the company could be out of bankruptcy in six weeks. If there's a $10 billion market cap a lot of equity guys could get involved. The CAM is getting equity. People are buying the debt with the expectation that the equity they're going to get will have a pretty strong bid, the trader added.

MGM studios loan inches up

Metro-Goldwyn-Mayer Inc.'s (MGM Studios) term loan was a little stronger in trading as the current levels seem to be attracting some buyers, according to traders.

The term loan was quoted by one trader at 47 7/8 bid, 48¾ offered, up from 47½ bid, 48½ offered, and by a second trader at 47¾ bid, 48½ offered, up from 47¼ bid, 48¼ offered.

On Wednesday the paper dropped from around the 50¼ bid, 51¼ offered context as the company held a lender call to discuss an extension of its forbearance agreement related to missed interest payments on its credit facility, but on Thursday things started to turn around and that trend continued into Friday.

MGM Studios is a Los Angeles-based motion picture, television, home video and theatrical production and distribution company.

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