Neiman falls with sales results; Claire's slides lower; Cablevision gets attention on bond news

By Sara Rosenberg

New York, Jan. 8 - Neiman Marcus Inc.'s term loan spiraled downwards during market hours following the release of disappointing monthly revenue results and Claire's Stores Inc. saw its term loan retreat as the market in general felt heavy.

Also in trading, Cablevision Systems Corp. saw some new focus from investors as the company announced a bond offering, but like many other names on Thursday, it too traded down, and LCDX 10 was weaker as well.

Neiman sales pressure bank levels

Neiman Marcus' term loan fell a couple of points in trading as investors reacted negatively to December numbers, according to traders.

One trader quoted the term loan at 66 bid, 69 offered, down from 68 bid, 71 offered on Wednesday, while a second trader quoted the loan at 69 bid, 71 offered, down two to three points on the day.

For the month of December, Neiman Marcus's total revenues were $532 million, down 26.4% from $723 million in the comparable period last year.

Comparable revenues for the month in the specialty retail stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, decreased 31.2%.

And, comparable revenues at Neiman Marcus Direct in the five-week December period decreased 9.2%.

Neiman Marcus is a Dallas-based high-end specialty retailer.

Claire's softens

Claire's Stores' term loan also traded down on Thursday as the overall market felt weaker, according to a trader.

The term loan was quoted at 39½ bid, 40 offered, down from 40½ bid, 41 offered, the trader said.

"Retail numbers were bad, but that wasn't unexpected," the trader said. "[Market] was heavy. We had a nice rally for the last week or so, so natural that people are taking some profits. But, volumes are picking up so that's good."

Claire's is a Pembroke Pines, Fla.-based specialty retailer offering value-priced jewelry and accessories.

Cablevision volume picks up; levels fall

Cablevision's term loan B was a bit more active at lower levels during market hours as the company revealed that it will be conducting an offering of senior notes, according to a trader.

The company said that its subsidiary, CSC Holdings Inc., would be the one selling $500 million of notes - which ended up being upsized to $844 million for $750 million in proceeds.

Proceeds from the notes will be used to address the company's upcoming debt maturities.

Following the news, Cablevision's term loan B started trading around with levels quoted at 87 bid, 88 offered, the trader said. Previously, the debt was quoted at 88 bid, 89 offered.

"[Bond news] didn't have a big affect, just brought more peoples attention to it. Created more volume," the trader added.

Cablevision is a Bethpage, N.Y.-based media and entertainment company.

Tropicana slides

Tropicana Entertainment LLC's opco term loan headed lower on Thursday as the company filed its plan of reorganization, according to a trader.

The term loan was quoted at 23 bid, 23½ offered, down from previous levels of 26 bid, 26½ offered, the trader said.

"Traded sown in anticipation of the [plan of reorganization]. No disclosure statement in it. Not enough detail to say anything about it," the trader added.

Under the plan, the company will do a $100 million common stock rights offering for holders of unsecured noteholder claims, issue $100 million of new notes and issue four-year warrants equal to 15% of the value of the common stock outstanding on the confirmation date.

Tropicana is a Fort Mitchell, Ky.-based gaming entertainment provider.

LyondellBasell trades down

LyondellBasell Industries AF SCA's term loan B debt also lost some ground in trading on Thursday, according to a trader.

The term loan B debt was quoted at 42½ bid, 44½ offered, down from around 45 bid, 46 offered, the trader said.

Lyondell Chemical Co., the U.S. subsidiary of Lyondell Basell, recently requested court approval of $8.015 billion in debtor-in-possession financing, consisting of $3.25 billion in new term loans, $3.25 billion refinancing obligations under its existing senior secured credit facilities and a $1.515 billion asset-based revolver.

Pricing on the new term loans is Libor plus 1,000 basis points and the revolver pricing is Libor plus 700 bps. There is a 3% Libor floor.

A group of Lyondell's secured lenders raised an objection to the DIP, claiming that the proposed financing would allow the DIP lenders to provide $4.334 billion in interim financing on less than 24 hours notice and to prime the senior secured claims of the non-participating senior secured lenders without consent.

The remaining senior secured lenders said they would not receive any meaningful adequate protection or a reasonable opportunity to participate in the proposed financing.

LyondellBasell is a Netherlands-based polymer, petrochemicals and fuels company.

LCDX drops

LCDX 10 saw its levels soften on Thursday as the cash market in general was down about a point on the day and stocks were mixed, according to a trader.

The index went out around 79.30 bid, 79.50 offered, down from 79.90 bid, 80 offered on Wednesday, the trader said.

Nasdaq closed up 17.95 points, or 1.12%, Dow Jones Industrial Average closed down 27.24 points, or 0.31%, S&P 500 closed up 3.08 points, or 0.34%, and NYSE closed up 38.09 points, or 0.66%.

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