Gymboree reports earnings increase, bonds jump; Peabody firm despite wider loss; FMG busy

By Stephanie N. Rotondo

Phoenix, April 23 – A fresh batch of earnings was pushing around a couple distressed debt names on Thursday.

Gymboree Corp. had a positive fiscal fourth quarter, reporting an increase in sales and earnings. That news resulted in a 6-point gain for the company’s bonds.

Meanwhile, coal producer Peabody Energy Corp. was moving up, even as the company reported a wider loss.

Still, the company noted that cost-cutting measures helped to offset depressed coal prices and hedging losses.

But while Peabody paper was ending with a positive tone, the rest of the coal market was not.

A trader said Arch Coal Inc.’s 7¼% notes due 2020 fell 1½ points to 35¼, while Alpha Natural Resources Inc.’s 7½% notes due 2020 held steady at 39¾.

Another source saw Alpha’s 6¼% notes due 2021 at 22½ bid, down 1½ points.

Away from earnings, FMG Resources’ bonds remained “fairly active,” a trader said, following a new deal that priced Wednesday and the announcement of a redemption.

Elsewhere in the iron arena, Cliffs Natural Resources Inc. was heading into higher territory, though with no fresh credit-specific news to act as a catalyst.

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