Six Flags inches upward; Blockbuster better; Primus gains after debt exchange; Gaming mixed

By Stephanie N. Rotondo

Portland, Ore., May 28 - Six Flags Inc. is attempting to weather the economic storm by cutting its admissions prices. During Wednesday's session, the amusement park operator's bonds edged upward.

Six Flags has faced obstacles in the recent downturn. Recession concerns and rising prices have kept park-goers at home. The company has also had to deal with increased competition from other theme parks.

Meanwhile, Blockbuster Inc. held its annual shareholder meeting Wednesday, where top management said that turnaround efforts have thus far been successful. The movie rental chain's debt gained ground during trading.

After announcing a debt exchange offer last week, Primus Telecommunications Group Inc.'s bonds have been slowly climbing. However, one trader said he was "surprised" the name has not garnered more attention.

In the gaming arena, there was little going on in Tropicana Entertainment LLC's bonds, even as noteholders voiced their objections to the company's debtor-in-possession loan. Trump Entertainment Resorts Inc.'s debt was also largely unchanged on the day.

Six Flags debt inches upward

Six Flags bonds edged higher during Wednesday trading after the company announced Tuesday that it had slashed the price of admissions to its parks.

A trader said there was some trading activity in the name, calling the 9 5/8% notes due 2014 "a touch better" around 62. Another source deemed that paper up half a point at 61.5 bid, while another saw the 8 7/8% notes due 2010 gain nearly a point to 92 bid.

Six Flags has struggled during the economic downturn as increasing prices and recession worries have kept would-be park-goers at home. To combat that problem, and to attempt to steal market share from competing amusement arenas, the company decided to cut admissions prices at its various 21 locations throughout the United States.

During the first quarter of the year, Six Flags reported a 19% increase in attendance. The company posted a 35% increase in revenue and narrowed its overall quarterly loss. Still, the company warned that upcoming quarters could be weaker.

Six Flags is a New York-based amusement park operator.

Blockbuster bonds better

Blockbuster's debt gained some ground, market sources reported. The movement came as the company held its annual shareholders meeting in New York.

One trader called the 9% notes due 2012 "a little better" at 83 bid, 83.5 offered. Another source pegged the bonds at 83 bid, up 1 point.

According to news reports, Jim Keyes, chief executive of Blockbuster, told shareholders that the company's turnaround efforts were well underway. However, Keyes gave little insight into the company's attempts to acquire Circuit City Stores.

Earlier this month, Circuit City finally gave up its attempts to thwart Blockbuster's takeover proposal by placing itself up for sale. This allowed Blockbuster access to the company's books. As previously reported, Circuit City was adamantly refusing Blockbuster's proposal, stating that the company did not have the funds to finance such an offer. However, billionaire investor Carl Icahn has stated that he will put up the funds necessary to make the deal happen.

Blockbuster is a Dallas-based movie rental chain.

Primus gains ground

A trader said he was "surprised" that more people have not been talking about Primus Telecommunications recently given that the company's recent debt exchange has prompted the bonds to move up.

The trader quoted the 14¼% notes due 2011 at 91 bid, 93 offered, the 3¾% notes due 2010 at 40 bid, 42 offered and the 8% notes due 2014 at 36 bid, 38 offered.

Another trader saw the 12¾% notes due 2009 up 2 points at 90.5 bid, 92.5 offered in the wake of the company's recent debt exchange.

Last week, Primus announced that it had reduced its debt by $63.2 million through a private exchange. Under the terms of the exchange, $67.1 million in principal amount of the 14¼% notes were newly issued to holders of $130.3 million in debt, including the 12¾% notes due 2009, the 3¾% convertible notes due 2010, the 5% notes due 2010 and the 8% notes due 2014. Debtholders also received a total of $4.7 million in cash.

Primus Telecommunications is a McLean, Va.-based integrated telecommunications provider.

Elsewhere in the sector, Charter Communications Inc.'s 11% notes due 2015 "ticked up," a trader said, to around 84. Level 3 Communications Inc.'s debt, however, fell slightly, its 9¼% notes due 2014 down a half point at 94.25 bid.

Another trader also saw Level 3 paper lower on the day, with the 8¼% notes due 2014 at 93 bid, 94.375 offered, about three-quarters of a point lower than Tuesday's finish, "so they were a little easier, but there was no news on them."

Gaming sector mixed

The gaming sector was largely mixed during the session, traders reported.

Investors did not seem surprised that Tropicana Entertainment's creditors committee and noteholder group voiced their objections over the company's fee-heavy debtor-in-possession loan. A trader pegged the 9 5/8% notes due 2014 at 52 bid, 54 offered, adding it "doesn't look like anyone cares on that one."

At another desk, a trader called Trump Entertainment's 8½% notes due 2015 unchanged at 59 bid, 60 offered. But another source saw the debt firm a bit to 59.5 bid, 60 offered.

Meanwhile, Isle of Capri Casino's 7% notes due 2014 inched higher to 76.25 bid, while Boyd Gaming's 7¾% notes due 2012 fell a point to 93 bid. Harrah's Operating's 6½% notes due 2016 dropped more than a point to end around 58.

Standard Pacific continues to gain

After gaining as much as 8 points amid active trading in the previous session, Standard Pacific Corp.'s bonds took it down a notch.

A trader said trading was relatively active in the name, though not as much as on Tuesday when the company announced a $530 million private equity infusion. The bonds were still gaining ground, however. He said the 9¼% notes due 2012 were "straddling 80." The 6½% notes due 2010 gained 1 to 2 points to close "close to 90," he said.

Another market source saw Standard Pacific's most actively traded issues, the 9¼% notes, push up to the high 70s from Tuesday's levels around 71. Most of the activity was in odd-lots, in the 73.5-75 area, but late in the day, several large trades pushed the bonds higher, to a round-lot high of 77.75 and an odd-lot finish around 80.

The 6½% notes were likewise were solidly higher for a second straight session, going home at 91 bid, up from Tuesday's finish around 88 bid. However, its 7% notes due 2015 were seen little changed at 78.75.

A trader at another shop said that Standard Pacific was "up again today" and quoted the 9¼% notes at 78 bid, 80 offered, up 6 points on the day.

Another trader pegged the 7¾% notes due 2013 as trading in round lots between 81.5 and 82, up slightly from 80 bid, 81 offered on Tuesday, while its 9¼% notes took "quite a jump" up to around the 78 area in round-lot trading, versus 71 on Tuesday.

Standard Pacific is an Irvine, Calif.-based homebuilder.

Elsewhere in the housing sector, Hovnanian Enterprises Inc.'s 6½% notes due 2014 lost more than a point to finish around 69.5

Broad market mostly lower

Trading in Delphi Corp.'s debt picked up, a trader said, and the bonds ended the session around 41. Meanwhile, Visteon Corp.'s 7% notes due 2014 lost more than a point to end around 67.

Finlay Fine Jewelry Inc.'s 8 3/8% notes due 2012 were seen down half a point at around the 40 area, while Spectrum Brands Inc.'s 7 3/8% notes due 2015 lost a point to edge just below 69 bid.

Countrywide Financial Corp.'s 6¼% notes due 2016 moved up about a point to 79 bid.

Paul Deckelman contributed to this article.

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