Last week's tone was modestly positive, aside from a few credit-specific blowups. Kmart's bonds dropped some 20 points after the Chapter 11 retailer asked for an amendment to its credit facility. Echostar saw some volatility, but ended the week unchanged. Here was other action.
Premier Parks Drops After
Weak Numbers
Premier Parks, the parent of Six Flags theme parks, saw its 9.5% notes of '09 (B2/B) drop 10 points to a bid of 86.5 after weak second quarter numbers. "If they had a poor summer, they're closed in the winter, so they're screwed," was one trader's take.
Nextel Improves
Nextel Communications saw its 9.375% notes of '09 (B3/B) improve two points to a 77.5 bid. One trader attributed the move to firming in high-grade telecom names Sprint Corp. and AT&T. Another trader, however, says the company reported improved cash flow and a debt buyback of an undisclosed amount.
Merchant Energy Firms Hang In Despite Accounting Woes
Energy trading firms were slightly better on the week on the back of improvement in equities. Though ceos of Mirant Corp. and CMS Energy announced they would not certify the accuracy of their financial statements, the bonds were unchanged on Thursday. The CMS 9.875% notes of '07 (B3/B+) were up four points overall on the week to 81, while Mirant's 8.30% notes of '11 (Ba1/BBB-) were up two points on the week to 55 through Thursday. AES Corp.'s 9.375% notes of '10 (Ba3/BB-) were up 3.5 points to 47.