Toys ‘R’ Us firms as debt called; coal, mining sectors remain under pressure; Nortel dips

By Stephanie N. Rotondo

Phoenix, Sept. 24 – The distressed debt market was once again soft, even as the equity markets rallied.

“A lot of stuff was down today,” one trader said. “[Things] definitely feel better for sale.”

“There were not a ton of winners today,” another trader said.

Toys ‘R’ Us Inc.’s debt was topical after the company announced it was calling its 7 3/8% notes due 2016. The bonds were mostly better on the day.

Elsewhere, the mining sector as a whole was also on the softer side, though on no fresh news.

A trader saw MolyCorp Inc.’s 10% notes due 2020 falling “just about 5 points” to 75, a level echoed at another desk.

The first trader also noted that Cliff’s Natural Resources Inc.’s paper “fell off a cliff.”

But Quicksilver Resources Inc.’s 7 1/8% notes due 2016 “had a nice rebound,” a trader said.

In the coal arena, Walter Energy Inc.’s 9½% notes due 2019 were deemed unchanged at two desks.

Arch Coal Inc.’s 7% notes due 2019 followed the sector’s latest downward trend, sliding 4 points in a single trade.

And, Nortel Networks Corp. is currently in process of giving closing arguments as bankruptcy judges in Canada and the U.S. look to divide the company’s remaining assets. With the hearings ongoing, the bonds were weaker in midweek trading, according to a trader.

© 2015 Prospect News.
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