Mississippi Chemical slows down; Levi Strauss sticks with previous levels; Dan River sees mild gain

By Carlise Newman

Chicago, Dec. 5 - Mississippi Chemical Corp. paper slipped back Friday after a few days of solid gains.

The news that subsidiaries Mississippi Potash Inc. and Eddy Potash Inc. have entered into an agreement to sell their potash assets to two subsidiaries of Intrepid Mining LLC for $27 million brought the bonds up mildly each day this week, until Wednesday when the notes zoomed ahead for no particular reason.

But on Friday Mississippi Chemical's 7¼% notes due 2017 fell to 18 bid from Thursday's close of 19 bid. The bonds had risen a ½ point both Monday, when the news first broke, and Tuesday, and then shot up to 18 bid on Wednesday. On Thursday they were seen trading 1 point higher at 19 bid.

Meanwhile Levi Strauss Inc. paper was unchanged after several days of mixed action. The bonds had fallen on Monday's news that chief financial officer Bill Chiasson will leave the company as it looks for ways to cut debt and costs.

The San Francisco-based apparel maker named Jim Fogarty of Alvarez & Marsal as interim CFO.

Levi's 11 5/8% notes due 2008 were quoted at 75 bid, unchanged from Thursday. The bonds dropped as much as 4 points Monday, then zoomed ahead Tuesday to end 3 points higher. Mid-week the paper was rising mildly, about 2 points.

"It was the same old, same old today. Things get quieter each day," one trader commented.

Meanwhile Dan River Inc.'s 12¾% notes due 2009 were seen at 29 bid, up 1 point. The bonds had risen 1½ points to 28 bid on Thursday.

Elsewhere, Loral Space & Communications Ltd.'s bonds were slightly lower, with the 10% notes due 2006 down a ½ point at 73 bid, according to a trader. The bonds had been trading at levels around 75 bid for the past several weeks and had plummeted earlier in November after Loral reported a huge third-quarter loss.

On Thursday traders had said the notes may have moved down on the news that Satelites Mexicanos, partially owned by the New York-based satellite operator, said it would delay the launch of a new satellite until the second quarter of next year as it restructures its debt.

"The fall could be due to the satellite problems or it could be because investors have temporarily lost interest," the trader said.

Satmex had expected to launch the satellite this month, but difficulties in refinancing its debt, a key step in getting part of the money it needs to pay for the satellite's insurance, have delayed the process. The Mexican satellite company, 49%-owned by Loral, has $525 million in high-yield bonds and floating-rate notes maturing next year.

Elsewhere Revlon Corp. bonds were "active," according to traders. Revlon's 8½% notes due 2006 were up ½ a point to 67 bid, 70 offered, according to a trader.

"Revlon's been going strong in the last month or two," the trader said.

In late November the bonds shot higher after the company said that Ron Perelman's MacAndrews & Forbes Holdings Inc. has agreed to provide up to $125 million to the cosmetics company in 2004, to enable the company to continue to execute its plan.

Telewest Communications plc's 9 5/8% notes due 2006 were up 1 point at 56½ bid, according to a trader.

Telewest recently announced plans to implement a financial restructuring that will allow noteholders to exchange notes for 98.5% of the common stock of the company.

Completion of the restructuring will result in the cancellation of all of the outstanding notes of Telewest and Telewest Jersey in return for the distribution of 98.5% of the common stock of new Telewest to the noteholders; and the distribution of the remaining 1.5% of the common stock of new Telewest to Telewest's eligible shareholders. This will reduce the total outstanding indebtedness of the business by £3.9 billion to £2.0 billion and significantly reduce interest expense.

"Trading was thin and everything was unchanged to just a point or so in either direction. Not an exciting day," said one trader.

© 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.