Cliffs Natural Resources announces tender, bonds pop; CGG remains firm on Technip offer

By Stephanie N. Rotondo

Phoenix, Nov. 20 – Cliffs Natural Resources Inc. was again the focus of the distressed debt market Thursday as investors reacted to word of a tender offer.

One trader said the bonds jumped 5 to 7 points on the news. Another trader noted that the “higher-priority” notes involved in the tender were up more than other issues.

Meanwhile, CGG SA bonds continued to firm up following news out Wednesday that Technip SA proposed buying out the company for the equivalent of $1.8 billion.

CGG rejected the offer, deeming the bid too low.

“There has definitely been some stuff that was volatile,” a trader said.

For instance, iHeart Communications Inc. – the former Clear Channel Communications Inc. – saw its debt “bouncing around,” the trader said.

The 14% notes due 2021 ticked as low as 77 before ending “closer to 80,” the trader said. The 10% notes due 2018 then fell to 75, but came back up to “around 78.”

At another desk, a trader said “almost $50 million” of the 14% notes traded, inching up half a point to 78. The 10% notes were deemed up 2½ points at 78¼.

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