Murray Energy falls amid Bowie Resource buyout; Sprint bonds rebound after Monday slide

By Paul Deckelman

New York, Oct 31 – Murray Energy Corp. was making news on Tuesday, with the coal company announcing its participation in a syndicate that is essentially buying out sector peer Bowie Resource Partners LLC with the combination of the two companies’ Western bituminous coal assets into a new entity, Canyon Consolidated Resources LLC., to be partially funded by a new junk bond deal.

But Murray’s current bondholders seemed underwhelmed by the news – they took the company’s outstanding bonds down by several points in active trading.

Traders in the bonds of distressed or merely underperforming companies meantime saw two companies whose bonds had fallen on Monday recover, or at least stop the bleeding.

They said that wireless operator Sprint Corp.’s paper was up modestly across the board Tuesday, after having retreated notably on Monday amid talk that negotiations aimed at combining Sprint with competitor T-Mobile (US) Inc. were approaching an impasse.

J.C. Penney Co. Inc.’s bonds were seen little changed on the session, after having fallen for two straight days before that after the struggling retailer released bearish sales and earnings guidance.

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