Cliffs selling more coal assets, ends mixed; RadioShack weakens further; Claire’s declines

By Stephanie N. Rotondo

Phoenix, Dec. 3 – Fresh news was helping some distressed bonds move around in midweek trading.

Cliffs Natural Resources Inc. was mixed – though mostly toward the down side – as the company announced yet another asset sale.

“The stock was roaring,” one trader noted.

The equity (NYSE: CLF) rose 44 cents, or 5.39%, to $8.60.

Cliffs Natural Resources, in its effort to pare down its business to focus on its core units, said Wednesday that it was selling in Logan County Coal assets in West Virginia for $175 million in cash.

The buyer is Coronado Coal II LLC. The deal is expected to be completed by the end of the year.

On the news, a trader said the 6¼% notes due 2040 inched up half a point to 63½.

However, he said the 5.9% notes due 2020 and the 3.95% notes due 2018 were weaker on the day.

Meanwhile, RadioShack Corp.’s debt continued to weaken following news out Tuesday. The company said Tuesday that lenders had served it with a notice of breach of covenant.

For its part, RadioShack is claiming that the notice is baseless.

In other retailers, Claire’s Stores Inc. reported earnings Wednesday. The company’s debt was trading lower after the numbers, as the company reported a slightly wider loss.

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