NII Holdings gives up gains in active trading; coal, mining names continue to climb higher

By Stephanie N. Rotondo

Phoenix, Aug. 19 – NII Holdings Inc. was again in focus on Tuesday, according to a trader.

“There were a fair amount of trades again today,” he said.

Over $20 million of the 7 5/8% notes due 2021 were exchanged, he said, falling half a point to 16.

The rest of the debt structure was also weaker on the day, just one day after the bonds popped up on news the Reston, Va.-based provider of Nextel mobile services in Latin America and Mexico said it was selling its Chilean subsidiary.

The company missed a $119 million coupon payment on Friday. Prior to missing the payment, the company had released yet another round of dismal earnings, stating that its liquidity was insufficient to keep going and that a bankruptcy filing was likely.

Away from NII Holdings, the coal and mining space continued to gain momentum.

A trader said Walter Energy Inc.’s 9 7/8% notes due 2020 picked up nearly a point to end at 57¼. Arch Coal Inc. was meantime up half a point to a point, the 7¼% notes due 2020 at 69 and the 7% notes due 2019 at 71½.

In Alpha Natural Resources Inc. paper, a trader pegged the 6¼% notes due 2021 at 69, up half a point, and the 6% notes due 2019 at 71¼, a point better.

As for Quicksilver Resources Inc., its 7 1/8% notes due 2016 gained over 2 points to close around 65¼, while the 9 1/8% notes due 2019 ended 1½ points higher at 85¾.

The 11% notes due 2021 put on “over a point,” a trader said, to 88.

MolyCorp Inc.’s 10% notes due 2020 were an outlier in the space, finishing the session unchanged at 85½.

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