Distressed bonds firm as week comes to end; NII debt pushes up; J.C. Penney rises on CFO news

By Stephanie N. Rotondo

Phoenix, Feb. 14 - The distressed debt market continued to have a firm tone to it Friday, even as snow hit the Northeast and Midwest yet again.

Still, a trader lamented that "it's always the same names in distressed."

NII Holdings Inc. was an active one, though on no fresh news. A trader saw the 10% notes due 2019 at 66 5/8, up over half a point. The 7 5/8% notes due 2021 were meantime holding steady at 46.

Among retailers, J.C. Penney Co. Inc.'s 7.4% notes due 2037 improved by over half a point to 67 5/8, while the 5.65% notes due 2020 increased half a point to 713/4.

The move came after the company said Thursday that Ken Hannah, chief financial officer, planned to resign his post in March. Ed Record will take over.

Hannah took the CFO job in May 2012.

RadioShack Corp.'s 6¾% notes due 2019 did not follow J.C. Penney's upward move. A trader called the issue off slightly at 653/4.

In the coal space, Walter Energy Inc. continued to be a busy one. The 8½% notes due 2021 rose half a point to 72 and the 9 7/8% notes due 2020 closed at 741/2, up a point on the day.

iPayment Inc.'s 15% notes due 2018 were seen rising over a point from its last trade "about a week ago," a trader said. He pegged the issue at 51, while the 10¼% notes due 2018 held in at 781/2.

And, Momentive Performance Materials Inc.'s 11½% notes due 2016 were likewise holding their ground at 681/2.

The markets will be closed Monday in observance of President's Day.

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