McClatchy bonds climb higher; EXCO gains pre-earnings; ResCap creeps up; Cemex debt gives back

By Stephanie N. Rotondo

Portland, Ore., April 30 - The distressed debt market was moving up Monday, though overall trading action was muted, traders reported.

"I don't see a lot of action on the downside," a trader said.

McClatchy Co. paper - a name that doesn't frequently trade - was gaining during the session. Last week, the company reported its quarterly results, which showed a loss due to lower revenues.

Also higher were EXCO Resources Inc.'s bonds. That company is slated to report earnings on Tuesday after the market closes.

Meanwhile, Residential Capital LLC "continues to creep up," a trader said. The market is currently awaiting a bankruptcy filing from the money-losing mortgage lending unit of Ally Financial Inc.

McClatchy paper strengthens

A trader said McLatchy's 5¾% notes due 2017 moved up a deuce to 801/2.

There was no fresh news out on the Sacramento-based newspaper publisher. However, the company did report earnings last week.

On Wednesday, the company posted a loss of $2.1 million, or 2 cents per share, compared to a loss of $2 million the year before. The slightly wider loss was blamed on weaker revenues.

Revenues dipped 5% to $288.3 million. Advertising revenues were down 7% at $209.8 million, though digital advertising gained 3% and circulation revenues inched up just under half a percent.

EXCO up ahead of numbers

EXCO Resources is scheduled to release earnings Tuesday after the bell. On Monday, the company's debt was trading up.

A trader saw the 7½% notes due 2018 at 861/4, up a point from intraday trades and up 1½ points from Friday.

"They're reporting tomorrow so maybe [someone] is covering," he said.

The Dallas-based oil and gas exploration company will then host a conference call on Wednesday.

ResCap keeps rising

Residential Capital's 9 5/8% notes due 2015 "continues to creep up," a trader said Monday.

He saw paper going out 93½ bid, 93¾ offered, noting that the bonds had gotten as good as a 931/2-94 context.

ResCap is expected to be preparing a bankruptcy filing that could come within a matter of weeks. On Friday, its parent company, Ally Financial, confirmed that Chapter 11 was in fact on the table and that if that route was taken, it could cost Ally as much as $1.25 billion.

ResCap is based in Minneapolis.

Cemex gives back, Clearwire improves

In other earnings-related moves, Cemex SAB de CV's 9¼% notes due 2020 were giving up some of the gains earned Friday following the company's earnings release on Thursday.

A trader saw the paper coming in 1½ points to 891/2.

Also, Clearwire Corp.'s 12% notes due 2015 were again seen higher by one trader who pegged the issue "up a point or so" at 931/2.

Clearwire also reported Thursday after the market closed.

In Cemex's quarterly report, 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 United States, though sales dipped 11% in Europe.

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

Bellevue, Wash.-based Clearwire meantime posted a loss of $182 million, down from $227 million the year before. The company also experienced a cash increase of $65.7 million.

Stanadyne gets hammered

A trader said Stanadyne Corp.'s 10% notes due 2015 "got crushed" during Monday trading, though there was no fresh news out to explain the loss.

He called the paper down 5 points to 84.

Stanadyne is a Windsor, Conn.-based manufacturer of diesel fuel systems, injectors, pumps, fuel additives and precision machining.

Broad market gains

Elsewhere in the distressed space, a trader said Caesars Entertainment Corp.'s 5 5/8% notes due 2018 moved up 1½ points to 771/2, while the 10% notes due 2016 rose half a point to 871/2.

Another trader said AMR Corp.'s 6¼% convertible notes due 2014 remained on an upward track, placing the bonds at 54½ bid, 55 offered.

Dynegy Holdings LLC's 8 3/8% notes due 2016 were also firmer, trading at 69.

And, MF Global Holdings Ltd.'s 6¼%/7¼% notes due 2016 were "quite a bit stronger" at 421/2.

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