Distressed debt market ends firm; Caesars gains as company makes N.Y. bid; NII remains strong

By Stephanie N. Rotondo

Phoenix, April 23 - There were "no real downward movers in distressed," a bond trader said Wednesday.

Caesars Entertainment Corp. was "pretty active," the trader said, following news the Las Vegas-based casino operator was making a bid to build a casino in New York.

Meanwhile, NII Holdings Corp.'s upward momentum continued into the midweek session. But a trader said he wasn't sure what was driving the recent surge higher.

After reporting a wider-than-expected loss on Tuesday, Arch Coal Inc.'s 7% notes due 2019 was "rebounding," a trader said, calling the paper up a point at 78.

"Coal was slightly better," said another trader.

Another source deemed Alpha Natural Resources Inc.'s 6¼% notes due 2021 up nearly a point at 77 bid, while yet another trader pegged Walter Energy Inc.'s 9 7/8% notes due 2020 at 671/4, up half a point.

While the distressed debt space was on the firm side, traders noted that a slew of new euro-denominated high-yield issues were taking focus. Over €12 billion of new high-yield debt came from Numericable Group SA, Altice SA and InterXion Holding NV.

Caesars on the rise

A trader said Caesars Entertainment debt was "all pretty active" during midweek trading.

He saw most of the issues moving higher. The 8½% notes due 2020 were not only the most active, but also the biggest gainer of the structure, he said, rising over 2 points to 85.

The 9% notes due 2020 were meantime up over 1½ points at 86, while the 10% notes due 2018 gained half a point to close at 461/2.

However, the trader said the 10¾% notes due 2016 dipped a quarter-point to 893/4.

A second market source pegged the 10% notes at 46½ bid, up a point on the day.

A third trader deemed the 8 ½% notes 2½ points higher at 85 and the 9% notes 1½ points better at 86.

Caesars is answering New York Governor Andrew M. Cuomo's call for casino development in the Upstate region. The company has reportedly made a bid to build a $750 million casino complex, including shops and restaurants, on a 120-acre parcel in Woodbury, N.Y.

Only four licenses are available, however, with a steep application fee of $1 million. Caesars is said to be competing against at least three other bidders.

More momentum for NII

NII Holdings' bonds continue to climb higher, but there hasn't been any catalyst to cause the gains, a trader said.

"I haven't seen anything in the way of news," he said.

The trader called the 7 5/8% notes due 2021 up a deuce at 301/2, while the 10% notes due 2016 were seen inching up to trade with a 39 handle.

Another trader said the 8 7/8% notes due 2019 were almost 3 points better at 47 5/8. The trader also saw the 7 5/8% notes at 301/2, up 2½ points.

At another desk, a trader placed the 7 5/8% notes at 30 5/8, up just over 2 points on the day. The 8 7/8% notes were deemed over half a point better at 47 5/8.

© 2015 Prospect News.
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