Verso, iPayment bonds rise, Toys ‘R’ Us slides; coal names sputter as GDP numbers released

By Stephanie N. Rotondo

Phoenix, June 25 – Verso Paper Corp. and iPayment Inc. were the big upward movers in the distressed debt market on Wednesday, though there was no fresh news on either name to act as a catalyst.

Verso, however, has been notable of late, given concerns that its merger with NewPage Corp. is in jeopardy. Those fears were furthered on Friday when Moody’s Investors Service downgraded Verso and its debt and called the merger into question.

Moody’s further stated that should the merger fail, Verso might be facing bankruptcy.

Still, the Memphis-based papermaker’s 8¾% notes due 2019 rose nearly 3 points in midweek trading to 43, according to a trader.

As for iPayment’s 10¼% notes due 2018, those were seen up 5 points in active trading at 87½.

As for the day’s downward movers, Toys “R” Us Inc. took that prize, as both of its issues ended the session down 2 points.

A trader said that the “coals came off a little bit,” ending a recent run-up.

The trader opined that the slip was due to a larger dip in the U.S.’s gross domestic product than was expected.

“It seems like commodities are tied to that sort of thing,” he said.

© 2015 Prospect News.
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