Sprint Nextel plans new issue, bonds stronger; Clear Channel paper rises; ATP up on oil strike

By Stephanie N. Rotondo

Portland, Ore., Feb. 27 - Distressed debt was "relatively strong still," a trader said Monday, though he noted that volume was average at best.

Another trader noted that there was a JPMorgan Chase & Co. high-yield and leveraged finance conference in Miami that was taking some players away from their desks.

Sprint Nextel Corp. paper got a boost on news the company was planning to sell $2 billion of notes in a two-part deal. The company said it would use proceeds for general corporate purposes, including redemptions or servicing of outstanding debt and potential funding of Clearwire Corp., of which Sprint is a majority stakeholder.

Clear Channel Communications Inc. also announced a new issue late in the trading day, which helped push the multimedia company's bonds upward.

Meanwhile, ATP Oil & Gas Corp. debt was "up a bunch," a trader said. The gains came as the company struck oil in a fourth well.

Sprint up on new deal

Sprint Nextel said Monday it was planning a $2 billion sale of notes in two parts, the proceeds of which could be used for redemptions or to fund its Clearwire venture.

The news helped the Overland Park, Kan.-based telecommunications provider's existing debt gain an average of a point on the day, according to traders.

A trader called the 6 7/8% notes due 2028 up nearly a point at 781/4, the 8¾% notes due 2032 a 1½ points better at 89½ and the 7 3/8% notes due 2015 up almost a point to 99.

Another trader saw "a bunch of action" in Sprint paper, though he said the 6 7/8% notes and 8¾% notes were "not all that much changed," trading with a 78 handle and at 891/2, respectively.

The new deal - led by Bank of America Corp. - was expected to price Monday after the close.

Clear Channel boosted

Clear Channel Communications announced after the close that its Clear Channel Outdoor unit was planning to sell $1.25 billion in two series of subordinated notes via a private placement in order to make a special dividend payment to the parent company.

"The bonds were better on the day," a trader remarked.

He called the 9% notes due 2021 half a point higher at 90¼ bid, 90½ offered.

Another trader deemed the 9% notes up almost a point at 90¼ and the 11% notes due 2016 up 1½ points at 771/2.

Clear Channel is a San Antonio-based multimedia company.

ATP gushes oil, bonds firm

ATP Oil & Gas said Monday that it had struck oil at its fourth well at its Telemark Hub.

"The early production rate performance has met expectations and the rate of oil production is being increased," the Houston-based oil producer said in a statement.

On the news, the company's 11 7/8% notes due 2015 were "up a bunch," a trader said, "and very active."

He called the issue 3 points better, trading around 67.

Also, the company's stock (Nasdaq: ATPG) jumped $1.35, or 18.96%, to $8.47.

Broad market mostly better

Also going on in the distressed debt space, Exide Technologies Inc.'s 8 5/8% notes due 2018 were up modestly at 77, a trader reported.

He also saw Caesars Entertainment Corp.'s 10% notes due 2018 falling half a point to 75.

At another desk, a trader said Residential Capital LLC's 9 5/8% notes due 2015 were up "about a point," trading with an 86 handle.

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