Freeport bonds continue rally as copper improves; iHeart debt busy on talk of refi plans

By Stephanie N. Rotondo

Seattle, Feb. 4 – Freeport-McMoRan Inc. again dominated the distressed landscape on Thursday, as rising copper prices gave the bonds – and the stock – a lift.

A trader said there was “heavy volume” in the name, seeing the 3.55% notes due 2022 rising over 3 points to 48½. Both the 2 3/8% notes due 2018 and the 5.45% notes due 2043 were up a similar amount, he said, at 69 and 44½, respectively.

The 3 7/8% notes due 2023 meantime added 4½ points, closing at 49¼.

Another trader said the bonds were “up a few points,” seeing the 3.55% notes trading into the high-40s from the mid-40s previously.

As for the equity (NYSE: FCX), it gained 87 cents, or 17.94%, to end at $5.72.

The mining company’s bonds have been on a ride in the last week. The debt got toppled on the heels of weak earnings and a significant downgrade by Moody’s Investors Service. But then the bonds began to rally.

Another notable name for the day was iHeartMedia Inc., as Bloomberg reported that the San Antonio-based multimedia company was working on a plan to retire $1.4 billion of its debt maturing before 2019.

“[The bonds] opened up really widely quoted, but I thought they were unchanged,” a trader said. “[The activity] appears to be much ado about nothing.”

He saw the 9% notes due 2021 holding at 63 3/8. The 10% notes due 2018 were likewise “right on top of where they were” at 41.

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