MolyCorp gives back gains; NII Holdings debt loses ground; retail sector under pressure

By Stephanie Rotondo

Phoenix, Aug. 7 – MolyCorp Inc. continued to be a notable name in the distressed space on Thursday, driven by news out on Wednesday of a new financing agreement.

However, though the bonds had initially popped on the news, at least some of the company’s debt gave back those gains.

Meanwhile, NII Holdings Inc. was decidedly weaker, though there was no fresh news out to act as a catalyst.

The retail arena was also softer, according to traders.

One trader saw RadioShack Corp.’s 6¾% notes due 2019 falling over a point to 39¼, while Gymboree Corp.’s 9 1/8% notes due 2018 declined 2½ points to 59.

Chilean grocery store operator SMU SA was meantime off 3 points, the 7¾% notes due 2020 closing at 65, the trader said.

And, he saw Logan’s Roadhouse Inc.’s 10¾% notes due 2017 losing “multiple points” to end around 72 5/8.

Fannie Mae and Freddie Mac reported earnings on Thursday, with both agencies shower smaller profits than the previous year.

However, a trader noted that the numbers came in above expectations.

That wasn’t the only news out on the agencies during the session: It was also reported that Fairholme had decreased its common equity stake in the companies, though the fund maintained its preferred stock holdings.

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