21st Century Oncology stays on radar; NII Holdings bonds soften; retail mixed, coal weaker

By Stephanie N. Rotondo

Phoenix, July 21 – 21st Century Oncology Inc. continued to be the focus of the distressed debt space Monday, following a trend set in the previous week.

The radiation therapy provider’s bonds have been plummeting of late as Medicare and Medicaid announced that it might slash what is pays out for radiation therapy equipment. With investors already concerned about 21 Century’s finances, the news created even more pressure, considering the large amount of Medicare and Medicaid patients the company has.

A trader said the 9 7/8% notes due 2017 remained weak in Monday trading, falling 3 points from Friday to 55 bid, 55½ offered.

However, he said the 8 7/8% notes due 2017 – “those senior bonds that have not been beaten down as much as the rest,” he said – put on 1¼ points, ending at 93½.

Aside from 21st Century Oncology the rest of the trading in the distressed universe “looked a little thin,” a trader said.

NII Holdings Inc. paper was somewhat softer on the day, though on no fresh news.

A trader pegged the 10% notes due 2016 around 29 and the 11 3/8% notes due 2019 at 87, off 1½ points from the end of last week, he said.

In the world of retail, RadioShack Corp.’s 6¾% notes due 2019 were seen around 45, while the Gymboree Corp.’s 9 1/8% notes due 2018 “rebounded” half a point to 62½.

Toys “R” Us Inc.’s 10 3/8% notes due 2017 were meantime down over 2 points “in just one trade,” a trader said, closing around 85¾.

The coal and mining arena finished the session trending a bit weaker as well.

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