Charter paper slips; Countrywide up despite poor BofA numbers; Swift bonds drive lower

By Stephanie N. Rotondo

Portland, Ore., April 21 - Charter Communications Inc.'s bonds were seen a smidge lower Monday, though traders reported there was very light volume in the name.

The bonds were edging up Friday, despite the news that the company had received a noncompliance letter from Nasdaq Stock Market. The cable operator's debt reversed its direction come Monday, losing as much as a point on the day.

Meanwhile, Countrywide Financial Corp.'s paper was deemed a "smidge better" after its savior Bank of America reported its first-quarter numbers - which came in lower than most analysts' expectations.

Swift Transportation Co. Inc. saw its bonds close unchanged to lower during the session as oil and gas prices once again hit new highs.

But overall traders were disappointed with the level of activity in the day. The lack of volume was blamed on everything from Spring Break to the Boston Marathon to the Passover holiday.

"It was definitely a bit of a snooze," said one trader, who called the market mostly unchanged.

"It is unbelievably quiet," said another source. "It is almost like a half-day holiday."

"Absolutely brutal," a trader stated. "We were just spinning our wheels."

Charter paper slips

Charter Communications' debt slipped anywhere from a quarter point to a full point during Monday's session, depending upon the issue in question.

One trader called the name "a little softer," its 11% notes due 2015 ending at around 76 versus levels of 76.5 bid, 77 offered on Friday.

"It was kind of mixed," he said of the company's various issues, calling them down a quarter- to a half-point.

Another trader called the 11% notes down a quarter point at 75.5 bid, 76.7 offered, noting that the bonds hit a high of 77 during the trading day. The trader also quoted the 10% notes due 2014 at 51 bid, 52 offered, unchanged from Friday.

At another desk, a trader pegged the 11% notes at 75.5 bid, 76.5 offered and the 9.92% notes at 51 bid, 52 offered.

"That's about a point lower," he said. "Not that big of a deal."

On Friday, news reports stated that Charter had received a letter of noncompliance from Nasdaq, as its stock had traded under $1 for 30 consecutive business days. The company has until October to bring up that price, or it could face repercussions, such as being delisted from the exchange.

Charter Communications is a St. Louis-based cable and internet provider.

Countrywide up despite poor BofA numbers

Though technically considered high yield, Countrywide Financial has moved around on the fringes of the distressed arena ever since the company was almost forced into a bankruptcy earlier this year.

But Bank of America swooped in to save the day, offering to buy the mortgage lender at the bargain price of $4 billion. The sale is expected to be completed in the third quarter.

On Monday, Bank of America reported its first-quarter results, which showed profit falling for the third-straight quarter.

Still, investors did not seem too concerned as Countrywide's bonds managed to close a "smidge better," as one trader put it.

The trader said there was not a lot of activity in the lender's debt - though there was not a lot of activity in the market as a whole, he noted - and the 6¼% notes due 2016 ended at 86 bid, 87 offered.

Another trader saw the 3¼% notes coming due in May at 99 bid, par offered and the 6¼% notes at 85.5 bid, 87 offered. The trader added that he could not tell if that was better or worse on the day.

For the first quarter, Bank of America's net income fell 77% to $1.21 billion, compared to $5.26 billion the year before. The company also lowered its earnings growth forecast for the year.

Countrywide has posted losses of $1.6 billion over the last two years. The company is expected to release its first-quarter financials next week.

Countrywide is a Calabasas, Calif.-based mortgage lender.

Elsewhere in the financial sector, Thornburg Mortgage Corp.'s 8% notes due 2013 closed unchanged at 73 bid, 75 offered while GMAC LLC's 8% notes due 2031 gained a point to 77.5 bid, 78.5 offered.

Swift drives lower

Swift Transportation's debt keeps on trucking lower, traders reported, as rising oil and gas prices put pressure on the industry as a whole.

One trader called the 12½% notes due 2017 unchanged at 38.5 bid, 39.5 offered. Another trader, however, said he saw the bonds offered at 38, adding "I am not even seeing a bid side now."

"They are just going lower, aren't they," he said, noting that the debt had been at 38.25 bid, 39.25 offered last week.

The trucking industry has faced hard times of late, what with consumer spending declining and oil and gas prices steadily gaining. Crude oil topped $117 a barrel Monday, yet another record high. The national average price of gasoline also hit a record at $3.50 per gallon.

Swift Transportation is a Phoenix-based transportation provider.

Broad market mostly firmer

Idearc Inc.'s 8% notes due 2013 ended unchanged at 71 bid, 72 offered.

Linens n'Things Inc. floating-rate notes due 2014 "continue to creep up," a trader said, closing at around 44.5 versus levels near 42 bid, 43 offered last week.

Tekni-Plex Inc.'s 12¾% notes due 2010 gained a whopping 8 points, a trader said, at 68 bid, 70 offered. He said he saw no reason for the move.

The trader also saw Six Flags Inc.'s 8 7/8% notes due 2010 up 1.5 points at 78 bid, 79 offered.

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