NewPage action lessens, bonds slip with market; Rite Aid dips with sector; Solo Cup flat

By Stephanie N. Rotondo

Portland, Ore., May 25 - Distressed debt trading was "a little soft to start" on Wednesday, a trader said, though he saw things getting "a little bit better" by the end of business.

"In the last hour or so, stuff was trading up instead of down," he said. "We'll see what tomorrow brings."

However, with the three-day weekend looming, traders are expecting the already new issue-focused market to get even more new issue-centric in the next couple of days.

Given the spotlight on new issues and the upcoming holiday break, trading in the distressed realm continued to center on the same names that have been dominating the arena for some time.

One such name is NewPage Corp. The bonds were essentially in the same zip code they have been for the last few sessions. But a trader did note that volume in the credit was far less than it has been over the past nearly two weeks.

A trader called NewPage's 10% notes due 2012 down a point at 421/2.

Another trader quoted the issue at 42½ bid, 43½ offered.

General softness in the retail arena pushed Rite Aid Corp. paper lower, though a trader remarked that the name was "not particularly busy."

Solo Cup Co. was also not overly active, even as Moody's Investors Service cut its outlook on the company to stable from positive.

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