NII paper mostly better on heels of new plan; Cliffs weaker again; Caesars closes mixed

By Stephanie N. Rotondo

Phoenix, Nov. 25 – Liquidity in the distressed bond market was dwindling Tuesday, as players prepare for the upcoming Thanksgiving holiday.

The bond market will close early on Wednesday due to the holiday.

While liquidity was thin, NII Holdings Inc.’s paper managed to react to the company’s announcement of a restructuring plan.

The news came out late Monday and traders said the bonds had little time to react at that time.

Come Tuesday trading, the “luxco” bonds were “up some,” according to a trader, though they were down from the intra-day highs.

Cliffs Natural Resources Inc. debt remained under pressure in Tuesday trading.

The company said late Wednesday that it was launching a tender offer for several series of notes.

News of the tender followed news that the company was looking to exit its operations at its Quebec-based Bloom Lake mine, which it had previously been looking for an investment partner for.

Caesars Entertainment Corp. received a notice of default from senior bondholders on Monday and come Tuesday, the casino operator’s debt was mixed.

The group also said that they did not get fair market value for the transferred assets.

For its part, Caesars is denying a default occurred.

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