Coal names continue to rally; Caesars mixed, investor weighs options; NII gaining ground

By Stephanie N. Rotondo

Phoenix, June 23 – The coal sector remained on an upward tilt in Monday’s distressed debt market trading.

There hasn’t been any particular news to cause the momentum, but there has been some feeling that coal demand – and therefore prices – are set to rebound.

“They just keep marching up every day of late, slowly,” a trader said.

Elsewhere, Caesars Entertainment Corp. bonds were mixed as yet another bondholder is taking a look at its options in the wake of a property sale that resulted in allegations of fraudulent transfer.

The rumor mill was meantime buzzing that NII Holdings Inc. was planning yet another asset sale. As such, the bonds finished the day with a firm tone.

The coal space was “rebounding a little bit,” a trader said Monday.

He said Arch Coal Inc.’s bonds improved by a quarter- to a half-point on the day, the 7¼% notes due 2021 at 74½ and the 7¼% notes due 2020 at 75½.

Alpha Natural Resources Inc. paper was also better. The trader placed the 9¾% notes due 2018 at 93¾, up a quarter-point and the 6% notes due 2019 at 75, up half a point.

As for Walter Energy Inc., a trader said its 9 7/8% notes due 2020 gained almost 2 points, closing around 62¾. The 8½% notes due 2021 ended up just shy of a point at 57.

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