Market muted, firm; NII quiets down; retailers, coal sector start week with positive tone

By Stephanie N. Rotondo

Phoenix, June 9 – Distressed debt traders said Monday was a slow day in terms of trading, but the market still managed to end with a positive tone.

“It was brutal,” one trader said of liquidity. “It was definitely a quiet day. Not a lot of newsworthy items.”

As the market firmed up, so did certain sectors such as retail and coal. However, NII Holdings Inc. debt was unchanged to weaker, depending on whom you asked.

In the retail space, a trader saw Claire’s Stores Inc.’s 8 7/8% notes due 2019 putting on almost half a point to close around 88 1/8. The paper was firm despite Standard & Poor’s lowering its outlook on the company to negative.

The trader also saw Toys “R” Us Inc.’s 10 3/8% notes due 2017 holding steady around 82.

Yet another source said Gymboree Corp.’s 9 1/8% notes due 2018 “look like they have been in a little better.”

A trader said J.C. Penney Co. Inc.’s 6 3/8% notes due 2036 came in slightly to end around 80 7/8. In the emerging market space, the trader said Chilean grocery store operator SMU SA’s 7¾% notes due 2020 slipped a quarter-point to 74½.

The coal space was also mostly firmer on the day. One trader said Arch Coal Inc.’s 9 7/8% notes due 2019 rose a quarter-point to 87, though its 7¼% notes due 2020 fell half a point to 74.

The trader also saw Alpha Natural Resources Inc.’s 6% notes due 2019 rising a point to 74¼.

A second trader said Walter Energy Inc.’s debt was better, the 11% PIK notes due 2020 “just north of 80” and the 9 7/8% notes due 2020 “around 60.”

© 2015 Prospect News.
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