Distressed debt generally softer; topical names stay in focus; iPayment bonds gain on earnings

By Stephanie N. Rotondo

Phoenix, March 28 - A distressed debt trader said, "There wasn't a lot of trading" in the space, but investors continued to focus on recently topical names.

One trader said there was "fairly good volume" in NII Holdings Inc.'s 8 7/8% notes due 2019, which he saw rising half a point to 451/2. The 7 5/8% notes due 2021 held steady at 281/2, he said, as the 10% notes due 2016 moved up over half a point to 411/2.

Another trader said the name was "trading, but it was right in line [with where it has been]."

With the market expecting a bankruptcy filing this weekend, Energy Future Holdings Inc.'s 15% notes due 2021 were inching higher to 231/4.

News outlets reported that the energy company was lining up about $9 billion of bankruptcy financing ahead of the filing.

In already bankrupt companies, Global Geophysical Services Inc.'s 10½% notes due 2017 retreated slightly after running up the last couple of sessions.

A trader pegged the debt at 62, down half a point.

Walter Energy Inc. also continued to be active. A trader said the 9 7/8% notes due 2020 came in half a point to finish around 65½ and the recently priced 11%/12% second-lien PIK toggle notes due 2019 remained under pressure, slipping to 901/2.

The latter issue priced at par just last week.

And Toys 'R' Us Corp.'s 7 3/8% notes due 2018 and 10 3/8% notes due 2017 were both deemed half a point weaker at 80½ and 85, respectively.

iPayment bonds gain

iPayment Inc.'s 10¼% notes due 2018 got a boost Friday as the New York-based credit card processing company reported earnings.

A trader said the issue was the day's "biggest mover on the up side," seeing the bonds put on 2½ points to end around 75.

Another trader also placed the notes around the 75 mark.

For the fourth quarter, the company processed a total of $5.3 billion in transactions, a 1% increase from the same period of 2012. Revenue was up slightly ay $169.2 million from $168.9 million.

Net loss was $2 million, which compared to net income of $100,000 the year before.

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