Caesars Entertainment second-liens active, up in midweek trading; AMD falls post-earnings

By Stephanie N. Rotondo

Phoenix, Jan. 21 – Distressed bonds were climbing higher in Wednesday trading, following the trend of the equity markets.

For its part, stocks were better as investors reacted to reports that the European Central Bank would announce a new stimulus plan after its Thursday meeting.

In distressed dealings, Caesars Entertainment Corp.’s second-lien notes were trading actively and better.

An informal group of Caesars’ debt holders is gaining ground in their effort to squash support of the company’s restructuring plan.

According to a press release put out by said group on Wednesday, it has inked binding agreements with over 56% of first-lien bank debt holders to forgo consenting to the plan that would split the now-bankrupt Caesars Entertainment Operating Co. Inc. into a two-sided real estate investment trust.

The plan would also give first-lien bondholders a 92% recovery on their holdings, whereas junior creditors would get just over 10%.

But while the marketplace had a positive tone, Advanced Micro Devices Inc.’s debt came in.

The weakness in the name came on the heels of a lowered revenue forecast for the first quarter.

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