Clearwire busy on earnings; Cemex gets boost, Kodak steady; Arch Coal slips on asset sale news

By Stephanie N. Rotondo

Portland, Ore., April 27 - Distressed debt was stronger again on Friday, according to traders.

"It was mostly an up day," one trader said. Another said that "everything was up, clearly there are buyers everywhere."

In earnings-related moves, Clearwire Corp. paper was active. But the bonds were either up or down on the results released late Thursday, depending on whom you talked to.

Cemex SAB de CV also reported earnings Thursday and come Friday, paper was on the rise.

Eastman Kodak Co. also came out with numbers on Friday, but a wider loss did little to entice investors to participate in the name.

Clearwire improves earnings

Clearwire earnings improved in the first quarter of 2012, the company reported late Thursday.

The news resulted in a fair bit of action for the Bellevue-based company's debt, though traders were mixed as to whether paper had gained or lost.

One trader said the notes looked "a little lower," the 12% notes due 2015 at 90 bid, 91 offered and the 14¾% notes due 2016 at 99 bid, 99½ offered.

But a second trader said the bonds were "up a couple points" post-earnings.

He pegged the 12% notes at 92.

For the quarter, Clearwire posted a loss of $182 million, down from $227 million the year before. The company also experienced a cash increase of $65.7 million.

Among other telecommunications names, Leap Wireless International Inc.'s 7¾% notes due 2020 were "active again," but in the "same sort of ZIP code" around 94, according to a trader. The company reported disappointing earnings on Thursday.

Also, Alcatel-Lucent USA's 6.45% notes due 2029 inched up a point to 74, a trader said.

Cemex paper rises

A trader saw Mexican cement manufacturer Cemex's bonds gaining ground after Thursday's earnings report.

He called the notes up 1½ points day over the day, seeing the 9% note due 2018 at 94 and the 9¼% notes due 2020 at 91.

The struggling company managed to narrow its quarterly loss to $26 million in the first quarter of 2012. That compared to a loss of $229 million the year before. The improved numbers were due to a 4% sales increase.

Sales came to $3.5 billion. Overall, sales were up 35% in the U.S., though sales dipped 11% in Europe.

The company also said that it was "confident" it could meet its ongoing debt obligations.

Kodak steady despite loss

Eastman Kodak, the Rochester, N.Y.-based digital imaging company currently sitting in bankruptcy, reported a wider first quarter loss Friday.

But the dismal earnings did little to move the company's debt one way or another.

A trader called the 10 5/8% notes due 2019 unchanged at 871/2. The 7¼% notes due 2013 were also steady at 30 bid, 31 offered.

"Bonds were pretty much unchanged," another trader said, seeing the 9¾% notes due 2018 in the 87½ area.

A third trader said the 7¼% notes were "kind of where they have been" at 30 bid, 31 offered.

For the first quarter, net loss increased to $366 million from $246 million the year before. The wider loss was attributed in part to reorganization charges of $88 million.

Revenues were also to blame, as they fell 27% to $965 million from $1.32 billion.

Kodak also reported a $61 million revenue decline related to a tax refund sharing agreement with intellectual property licensees.

Arch loses on asset sales

A trader said Arch Coal Inc.'s bonds were weaker Friday, following news out Thursday indicating the company is looking to make some asset sales.

He called the 8¾% notes due 2016 "down a couple points" at par 1/2, while the 7½% notes due 2020 dropped a point to 901/2.

Bloomberg reported Thursday that the coal producer had put up several of its thermal-coal mines up for sale and bids were expected to being arriving in late May. The sale is valued at around $600 million, if not more.

The St. Louis-based company is slated to put out its quarterly results on Tuesday. Analysts are expecting a loss of 17 cents per share on revenues of $1.12 billion.

Broad market gains

Among other distressed issuers, Caesars Entertainment Corp.'s 5 5/8% notes due 2015 inched up over a point to 76, according to a trader.

Another trader said AMR Corp.'s benchmark 6¼% convertible notes due 2014 were "stronger again" at 54.

Dynegy Holdings LLC's 8 3/8% notes due 2016 were also firming, closing around 68.

And, Ambac Financial Group Inc.'s bonds - which tend to trade in line with one another - firmed to "18-ish," the trader said.

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