Gymboree debt ends slightly higher, RadioShack steady; Toys ‘R’ Us holders hire advisors

By Stephanie N. Rotondo

Phoenix, Sept. 12 – Distressed debt weakened Friday along with the broader markets.

Investors’ focus on recent high-yield bond deals from California Resources Corp. and Jupiter Resources Ltd., among others, was also weighing on volume in the space.

Still, some recent topical names continued to move around, especially in the retail arena.

A trader said Gymboree Corp.’s 9 1/8% notes due 2018 “continued to trade,” seeing the paper around 38, which he said was “maybe a smidge better.”

The bonds have been plummeting ever since the company reported earnings on Wednesday.

RadioShack Corp. was meantime holding steady, according to market sources.

The Fort Worth, Texas-based electronics retailer also put out numbers this week.

Also in the retail world, Toys “R” Us Inc. was on the decline. It was reported Friday that noteholders had retained Moelis & Co. LLC to represent them in refinancing talks.

A trader said NII Holdings Inc. paper was dipping ahead of the expiration of the company’s 30-day grace period.

“Guess we will see what comes out of the weekend,” a trader said.

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