Cliffs looks to exit Bloom Lake mine, bonds ‘all over the place’; Guitar Center debt firm

By Stephanie N. Rotondo

Phoenix, Nov. 19 – Cliffs Natural Resources Inc. was again topical in Wednesday’s distressed debt market, as the company said it was looking to sell some assets.

The company had previously been looking for an investment partner in the Quebec-based Bloom Lake mine. But with no firm deals in line, the iron ore producer said it needed to shed the asset.

On the news, the company’s debt was “initially way down,” a trader said. The bonds recovered some by the end of the day, however.

Meanwhile, a trader said Guitar Center Inc. paper was “better today,” rising anywhere from 3 to 8 points. The trader said he believed the company held an earnings call on Wednesday.

After the bell, Caesars Entertainment Corp. released details to creditors regarding a reorganization plan that was agreed on with some debtholders earlier this month. Under the plan, Caesars Entertainment Operating Co. would be placed into bankruptcy by January.

According to market sources, the plan would include turning the opco into a real estate investment trust and a unit that manages the properties.

Ahead of the news, the casino operator’s debt was muted and little moved.

CGG SA’s bonds “were flying” late in the day Wednesday, as Technip SA offered to buy the company out.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.