Sears paper off on exchange offer news; Claire’s lags; Frontier still busy, but mixed

By Paul Deckelman and James McCandless

New York, Jan. 23 – On what traders in distressed debt and in notes and bonds of underperforming companies and sectors were calling an otherwise slow day in that market Tuesday, Sears Holdings Corp. announced a plan that would help reduce some of its outstanding debt, causing the affected notes to trade sharply downward on the day. Traders described the move as part of a continuing effort by the embattled retailer to prevent bankruptcy.

Out of that same sector, Claire’s Stores Inc.’s notes trended downward on the announcement that it would examine its capital structure with the help of investment firm Lazard as part of an effort to achieve long-term stability.

In the telecom sphere, trading in Frontier Communications Corp. remained at high volume, continuing the recently intense activity spurred by the news that the wireline service provider’s recently announced amendments to its credit agreement had been finalized, though Tuesday’s results were mixed from note to note, according to traders.

Intelsat SA’s several series of notes from its Luxembourg and Jackson subsidiaries were seen higher across the board, though on no specific news about the communications satellite company.

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