Distressed activity mixed, muted ahead of holiday; RadioShack inches higher; coal sector mixed

By Stephanie N. Rotondo

Phoenix, July 2 – The distressed debt market was again mixed in midweek trading, as liquidity stayed muted ahead of the holiday weekend.

One trader said NII Holdings Inc.’s bonds were mixed, seeing the 7 5/8% notes due 2021 falling nearly half a point to 29 5/8 and the 10% notes due 2016 moving up a quarter-point to 31½.

But another trader said the name was better, calling the 7 5/8% notes “up marginally” at 29½.

In the retail space, RadioShack Corp.’s 6¾% notes due 2019 were seen at 42½, up over half a point, according to a trader.

Another trader placed the issue in a 42 to 43 context.

Those bonds have been inching up lately, but a trader said he had not seen any reason for those gains.

“I don’t really know why it was going up,” he said.

Also in retailers, The Gymboree Corp.’s 9 1/8% notes due 2018 slipped almost half a point to 66 3/8, while Toys “R” Us Inc.’s 7 3/8% notes due 2018 gained three-quarters to close around 76¾.

Meanwhile, coal was following the general trend of the market.

One trader saw Arch Coal Inc.’s 7¼% notes due 2021 slipping just under half a point to 73 5/8. Walter Energy Inc.’s 9 7/8% notes due 2020 were deemed down 2½ points at 60.

As for Alpha Natural Resources Inc., the trader said the 6¼% notes due 2021 dipped half a point to 70, though the 6% notes due 2019 gained a point to 74.

Another market source, however, said the 6¼% notes dropped a point to 70 bid.

© 2015 Prospect News.
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