Caesars Entertainment reports wider loss, bonds mixed; NII debt quiet, lower ahead of earnings

By Stephanie N. Rotondo

Phoenix, Aug. 11 – It was a positive day for the distressed debt market, though liquidity remained subdued due to it being a summer Monday.

“It was definitely on the quiet side,” a trader said.

On the back of its second-quarter results, Caesars Entertainment Corp.’s debt was mixed at day’s end. The Las Vegas-based casino operator reported a wider loss for the period.

One trader said the 10% notes due 2018 rose half a point to 30, while the 11¼% notes due 2017 fell a quarter-point to 86¾.

Another market source pegged the 10% notes at 29¼ bid, up half a point.

Net loss for the quarter more than doubled to $466.4 million, or $3.24 per share, from $212.2 million, or $1.69 per share, the year before.

The company attributed the larger loss to higher interest expense, which increased $113.7 million.

Net revenues increased 3% to $2.19 billion despite a 1.9% decline in casino revenues.

The company, which is currently battling creditors over the sale of four of its properties to an affiliate earlier this year, scheduled a conference call for after the market close.

Meanwhile, a trader said NII Holdings Inc. was “quoted a little bit lower” ahead of its earnings release, also slated for after the market closed.

The company, however, was not planning to hold a conference call.

“There wasn’t a lot of trading ahead of the numbers,” the trader said.

Another trader saw the 7 5/8% notes due 2021 slipping a quarter-point to 25.

The numbers had not been released as of 5 p.m. ET.

Mining mostly better

The mining space ended with a mostly firm tone on Monday.

Cliffs Natural Resources Inc.’s 6¼% notes due 2040 were seen at 87¼ by one trader. The trader said that the level “doesn’t look like it really changed,” though it appeared to be down nearly a point.

Alpha Natural Resources Inc.’s 6¼% notes due 2021 finished the day up half a point at 65, according to the trader, as Arch Coal Inc.’s 7¼% notes due 2021 gained a point to 65½.

In Quicksilver Resources Inc.’s bonds, the paper was mixed. The 9 1/8% notes due 2019 improved by almost 2½ points to 83 5/8, a trader said, but the 7 1/8% notes due 2016 fell a point to 72.

And, MolyCorp Inc.’s 10% notes due 2020 fell almost a point to 86½.

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