New issues were the main focus last week as TRW Automotive priced a $1.58 billion deal. Gaming weakened slightly. Here is other action.
Nash Finch Drops Amid SEC Probe
Nash Finch saw its 8.5% notes of '08 fell from 70 last Wednesday to a bid of 50 as the food distributor announced a Securities and Exchange Commission investigation into a company promotional program used by manufacturers.
Robert Goch, analyst at Miller Tabak Roberts Securities, says there are several unanswered questions. "The outlook is cloudy. People are scratching their heads trying to figure out if they will need to restate earnings and if so to what extent. If there is a restatement, people will have to reevaluate the earnings power of the company," he says.
El Paso Plummets
The El Paso Corp. 7.875% notes of '12 fell 10 points to 69 after the company missed earnings estimates and announced a wholesale restructuring plan. A high-grade analyst who has given up formal coverage of the company says new waves of legacy high-grade sellers appeared in the market last week.