Sprint and T-Mobile see only a little bit of movement; newly issued Netflix, URI trade

By Colin Hanner and Paul A. Harris

Chicago, Oct. 25 – Newly issued notes and quarterly earnings caused some movement in Junkbondland on Tuesday but not enough to stir much volatility during the session.

The second quarter results for Sprint Corp. reported growth in net operating revenues of $8.25 billion, and a net loss of $142 million on operating income of $622 million and adjusted EBITDA of $2.35 billion.

Though Sprint notes have been trading, one trader said there has been a shortfall in activity, especially with the news surrounding the company.

Chief executive officer Marcelo Claure said the value of Sprint to outside companies has significantly grown, which also seems to be the case for T-Mobile USA Inc. in light of the proposed AT&T takeover of Time Warner Inc. for $85.4 billion.

After announcing its third quarter results Monday, the wireless phone company’s stock jumped nearly 10%, but on Tuesday, it saw little movement, albeit some trading, on a few of its notes.

United Rentals, Inc. saw the “heaviest trade volume” on the day with 100 million trades on its 5½% notes due 2027, a trader said. He said the notes were up ¾ point to 100¾.

The heavy trading comes a day after the equipment rental company announced the pricing of $750 million of 5½% notes due 2027.

Entertainment distributor Netflix Inc. saw “some movement,” per one trader, who saw the 4 3/8% notes due 2026 down ½ point to par after being up to par-and-a-half yesterday.

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