Travelport bonds continue to firm; NII Capital debt climbs higher; Sorenson notes hold steady

By Stephanie N. Rotondo

Phoenix, March 13 - The distressed debt market was "a little bit better," a trader said Wednesday, though a lot of the action in the high-yield space was spent on new issues and Chesapeake Energy Corp.

Travelport LLC remained active, just one day after the company announced a comprehensive refinancing plan with bondholders. The company had also released its fourth-quarter results on Tuesday.

Meanwhile, NII Capital Corp. continued to creep higher. A trader said the name has been more active and firmer of late.

And, Sorenson Communications Inc.'s debt was holding steady as the company firmed the offer price for its new term loan at par.

Travelport gains again

A trader said Travelport bonds "continue to be active," seeing the 9 7/8% notes due 2014 firm up to levels around 101.

The trader also saw the 11 7/8% notes due 2016 rising to around 80.

Another trader pegged the 9 7/8% notes at 1011/2, up over a point on the day, while the 11 7/8% notes hit 791/4.

He placed the floating-rate notes due 2014 at 951/2, though he was not sure what sort of movement that was.

"They don't trade much," he said of the latter issue.

On Tuesday, the Atlanta-based travel services provider said that bondholders had agreed to a plan that swap their debt for new 13 7/8% notes due 2016 or floating-rate notes due 2016, plus cash.

The company also reached an agreement with its PIK-loan lenders to swap the debt for equity.

Travelport also reported quarterly results on Tuesday. Though the company more than doubled its loss to $171 million - compared to $84 million the previous year - the results were in line with expectations.

NII Capital on the rise

NII Capital's 7 5/8% notes due 2021 remained strong, a trader said, seeing the issue gain nearly a point to end at 703/4.

A second trader placed the debt around 71.

The first trader remarked that the name has been busier of late.

Late last week, the Mexican government announced new rules pertaining to the phone and cable industries, designed to break up monopolies. The efforts could prove a positive for the Reston, Va.-based provider of wireless communication services in Latin America.

Sorenson holds as loan firmed

Sorenson Communications' 10 ½% notes due 2015 were holding around the 87 level, a trader said on Wednesday.

The Salt Lake City-based provider of video relay telephone services has been shopping a new term loan. On Wednesday, the company firmed the offer price for the $550 million loan at par.

Proceeds from the new debt will be used to pay off an existing term loan and to add cash to the balance sheet.

Broad market remains strong

Among other distressed credits, a trader said Overseas Shipholding Group Inc.'s 8 1/8% notes due 2018 were up another point at 63.

The trader also noted that Edison Mission Energy's bonds - all of which trade in line with one another - had been "creeping up," seeing the debt ending around 52.

At another desk, a trader said Caesars Entertainment Corp.'s 10% notes due 2018 slipped over a point to close around 633/4.

A third trader saw J.C. Penney Co. Inc.'s 7 1/8% notes due 2023 continuing to climb higher, pegging the notes around 99.

And, ATP Oil & Gas Corp.'s 11 7/8% notes due 2015 inched up to levels around 5.

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