Tropicana unmoved on plan to remarket Casino Aztar; Burlington Coat bonds off, Bon-Ton pares losses

By Stephanie N. Rotondo

Portland, Ore., Aug. 22 - The week that began with a whimper ended that same way, distressed traders said Friday.

"[Trading] is very sporadic and limited," said one trader.

"There're not even any stories or any movement," said another.

Such was the case for Tropicana Entertainment LLC. The casino operator's bonds closed essentially unchanged - and about the same as the previous week's Friday - despite news that the company was looking to re-market its Casino Aztar property.

Elsewhere, retailers were largely mixed during the session. Burlington Coat Factory Warehouse Corp.'s bonds ended weaker, while Bon-Ton Stores Inc.'s debt regained some of the ground it lost Thursday.

Looking forward, traders opined that the next trading week - considered the last real week of summer - would be more of the same.

"It's the last week of August so I think it will be dead," a trader said.

Another trader agreed, adding that next Friday will be an early close due to the Labor Day holiday on Sept. 1.

Tropicana seeks Aztar buyer

Tropicana Entertainment's bonds ended the week about unchanged, even as the company said it is looking to re-market its Casino Aztar property.

A trader called the 9 5/8% notes due 2014 about the same as where they ended last week at 31 bid, 32 offered. Another trader said he saw markets in the low-30s, though there were no trades.

The casino operator said in a press release that it has asked for court permission to auction of its Evansville, Ind., casino. The company hopes to attract a higher price for the asset than what Eldorado Resorts LLC proposed in March.

The company also hopes the auction will give it insight on whether to keep the property or to unload it.

"They have to sell," said one source. "They'll have to sell but can they find a buyer for a price that clears all the parties involved?"

Still, another source said he believes "people are optimistic that somebody will bid for the Atlantic City properties."

In the rest of the sector, Trump Entertainment Resorts Inc.'s 8½% notes due 2015 pared their losses from the previous session, ending at 45.5, a trader said. But another trader called the debt unchanged at 45 bid, 46 offered.

Overall, there was little action seen in the sector at large.

"There's not much in casinos, although the stocks are a little better," a trader said.

Retail sector mixed

A trader said there was "still some action in retailers," though the sector ended the week largely mixed.

The trader called Burlington Coat Factory's 11 1/8% notes due 2014 weaker at around 73.5. Another trader saw the bonds also at that level, which he called down half a point.

But another trader said the bonds have fallen from around 75 bid, 76 offered to the 73 context, which he said was not that notable.

Meanwhile, Bon-Ton Stores' 10¼% notes due 2014 were "probably a little better" at 48 bid, 49 offered, a trader said.

The bonds had gotten softer in the last two sessions. First, the notes fell Wednesday ahead of the retailer's quarterly numbers. Once the numbers - which included a wider loss due to a goodwill impairment charge - appeared on Thursday, the bonds continued to weaken.

Neiman Marcus Group Inc.'s debt has been one of the more active issues of late, traders reported. The 9% notes due 2015 moved back up from their lower levels Thursday to end the week around 98, one market source said.

"They are better for sale," he said.

But another source deemed the bonds unchanged.

Sally Beauty's 10½% notes due 2016 traded down toward the bid side, a trader said, clocking the debt at 100.25.

At another desk, Rite-Aid Corp.'s 8 5/8% notes due 2015 were seen a point softer at 64.75 bid.

Spectrum ends weaker

Spectrum Brands Inc.'s 11% toggles notes due 2013 were "off a touch," according to one trader, who saw the notes trade at 71.

"The market is bracketing that now," he said.

The 7 3/8% notes due 2015 were likewise lower, offered at 54.

"They are trading at yesterday's bid side," he said.

However, the trader said there was no news to prompt the move.

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