NewPage Junk Bonds Fall to Lowest Since 2009, Trace Data Show
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NewPage Corp. bonds fell to the lowest level since March 2009 on concern that the junk-rated coated-paper maker owned by Cerberus Capital Management LP will be unable to make an upcoming coupon payment and will restructure its debt.
The company’s $806 million of 10 percent second-lien notes due May 2012 fell 3 cents to 29 cents on the dollar as of 2:38 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt has dropped about 8.75 cents this week and is at the lowest level since March 2009.