NII Holdings debt bounces around, remains active; Momentive paper gains steam; RadioShack dips

By Stephanie N. Rotondo

Phoenix, March 7 - The distressed debt space continued to be dominated by NII Holdings Inc. during Friday trading.

One trader said the 7 5/8% notes due 2021 were "bouncing around a bit," trading around in a "couple point range."

He saw the issue going out around 39, though he noted the bonds traded as low as just under 38.

The 10% notes due 2016 were meantime trading in a 49 to 50 context.

Another trader said there was "fairly good volume" in the 7 5/8% notes, seeing the paper off 1½ points at 381/2.

However, he saw the 10% notes up almost a point at 50¼ and the 8 7/8% notes due 2019 at 49, up a quarter-point.

The name has been topical since the company's Feb. 28 earnings report, which showed not only a huge subscriber loss, but a 22% decline in quarterly earnings.

The company also warned that its liquidity position was likely not sufficient enough to cover 2015 obligations.

Momentive gains momentum

Momentive Performance Materials Inc. was climbing higher in the last trading session of the week, though there was no news out on the Columbus, Ohio-based specialty chemical maker.

One trader deemed the 9% notes due 2021 up 1½ points at 88, while the 11½% notes due 2016 jumped 3 points to 32 "on just a single trade."

Another trader said the 11½% notes were "definitely doing the creep," seeing the paper get as good as 35 bid.

A third trader called the 9% notes up 1 to 1½ points, trading with an 88 handle. The 11½% notes were "up close to 5 points" around 35.

RadioShack, Gymboree weaken

RadioShack Corp. continued to see the bottom fall out, as its 6¾% notes due 2019 were again deemed "a touch weaker" by a trader.

The trader pegged the issue at 44 bid, 46 offered.

Another trader said the debt was "not super active" and "kind of trading in the same level" around 47.

Yet another source said the paper was off 5 points around 46.

Among other retailers, Gymboree Corp.'s 9 1/8% notes due 2018 were under pressure, falling over a point to 853/4, according to one trader.

"They got hit a little bit the other day," another trader said. He said the debt dropped another 2 points on Friday to around 851/2.

There has been no fresh news out on the children's wear retailer.

Alpha Natural softens

Alpha Natural Resources Inc. continued to slide as investors react to a $27 million fine the company was recently slapped with.

A trader saw the 6¼% notes due 2021 falling 1½ points to 801/2, while the 6% notes due 2019 lost almost 2 points to end around 813/4.

Alpha Natural Resources was levied a $27.5 million fine on Wednesday, due to wastewater leaks from its mines in five states.

In addition to the fine, the company has to pay $200 million for wastewater treatment systems at its sites.

The fine is the largest civil settlement ever handed down under the Clean Water Act.

Elsewhere in the coal sector, Walter Energy Inc.'s 9 7/8% notes due 2020 fell a point to close around 75.

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