Last week was quiet following the holiday, say traders. New issues continued to trade well. Tycoand Dynegywere among the weaker names. Here was other action through last Thursday.
Xerox Rises As Company Hires New CFO
The Xerox 9.75% notes of '09 (B1/BB) were up two points to a 92 bid. Traders say the naming of a new cfo, Lawrence Zimmerman, seemed to bolster investor confidence that the firm's accounting troubles were behind it.
Rural Wireless Weaker
Bonds of rural wireless companies were off last week. The Western Wireless 10.5% notes of '07 (B3/CCC+) dropped three points to 76. Rural Cellular's 9.75% notes of '10 (B3/B-) dropped from 67.5 to 66. American Cellular's 9.5% of '09 (Caa3/CCC-) were bid three points weaker to 39.
Anthony Klarman, analyst at Deutsche Bank, says American Cellular's case is unique, as it is trying to get additional flexibility under its bank loan agreement. There is also uncertainty as to whether AT&T and Dobson Cellular, each of which own a 50% stake in the company, will commit additional capital to the company.
Klarman says there have also been continuing concerns about declines in roaming revenue hurting rural carriers. However, there was no news on that topic last week, Klarman says.
Adelphia Weakens As Bankruptcy Fears Loom
Adelphia Communications bonds were softer last week. The 10.875% notes of '11 (Caa1/C) were off two points to a 73 bid. Two high-yield portfolio managers were speculating late last week that a Chapter 11 filing was imminent, as loan covenants were likely to be tripped.