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Prospect News home > News index > List of issuers F > Headlines for FMG Resources (August 2006) Pty Ltd. > News item |
Distressed market in post-holiday lull; FMG bonds bounce on rumors of Chinese investment
By Stephanie N. Rotondo
Phoenix, May 26 – The distressed debt market experienced a sleepy Tuesday after the long holiday weekend, according to a trader.
The trader noted that even Charter Communications Inc. high-yield paper was “not overly active” on news the cable company had agreed to acquire Time Warner Inc. and BrightHouse Networks.
However, there was some upside in the day’s distressed dealings.
FMG Resources, for one, “got a pop” on “speculation of a potential foreign investment,” a trader said.
He said the company’s 8¼% notes due 2019 were “fairly active” and “up a couple points,” trading around 93.
It is being reported that Baosteel and Citic – both Chinese companies – have applied to Australia’s Foreign Investment Review Board to gain approval to make an investment in the iron ore producer.
For its part, FMG is claiming it has no knowledge of such applications.
Also in the iron space, a trader said Cliffs Natural Resources Inc.’s 8¼% first-lien notes due 2020 “got a bounce as well,” trading “close to 98.”
The trader said that level was “up a couple points.”
However, there was no specific news out on that domestic iron ore company.
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