Cliffs declines as tender, bond offer nixed; mining sector ends weaker; RadioShack rises

By Stephanie N. Rotondo

Phoenix, Dec. 4 – Cliffs Natural Resources Inc. remained in focus in the distressed debt realm Thursday, as the company scrapped plans for a tender offer and subsequent bond offering.

“With the unfavorable move in market rates during the past few weeks, the prudent decision is to postpone the company’s refinancing plans until market conditions improve,” said Lourenco Goncalves, chief executive officer, in a statement.

Following the news, a trader said the iron ore producer’s debt “started to get hit, but then it came back a little.”

Elsewhere in the mining arena, MolyCorp Inc.’s 10% notes due 2020 fell over a point to 61¾, according to a trader.

In the coal space, Walter Energy Inc.’s 8½% notes due 2021 inched up a quarter-point to 23½, a trader said. The 9 7/8% notes due 2020 held steady at 24.

Arch Coal Inc. was meantime softer, the trader said, seeing the 7¼% notes due 2021 declining a point to 35¼.

And, Alpha Natural Resources Inc.’s 6¼% notes due 2021 closed off a quarter-point at 41¾.

Among other names recently in the headlines, RadioShack Corp.’s 6¾% notes due 2019 were seen recovering some after losing ground on allegations of a covenant breach.

© 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.