Bombardier improves as it seeks government aid; Consol, Peabody remain weak post-earnings

By Stephanie N. Rotondo

Seattle, Oct. 28 – Bombardier Inc. bonds were taking focus in the distressed debt market on Wednesday, as it was reported that the company was seeking government support.

Several news outlets reported that the aircraft manufacturer had approached the Ottawa government for short-term financial assistance while the company tries to get its CSeries aircraft into service.

Meanwhile, coal names Consol Energy Inc. and Peabody Energy Corp. continued to weaken, just one day after the companies reported somewhat better-than-expected earnings.

In addition to weak coal prices, low natural gas prices have also played a role in the downturn of the sector.

Also in the coal space, Arch Coal Inc.’s unsecured notes fell to 2.5 cents on the dollar, according to a trader.

“Wow, they are almost to zero,” he said, noting that the debt was down half a point to a point.

In the telecom space, a trader said Intelsat SA’s 7¾% notes due 2021 were off about a point ahead of the company’s Thursday earnings release.

He pegged the notes at 72½.

Elsewhere, a trader said Millicom – a company engaged in mobile phone services in emerging markets – was weaker, though there was no fresh news to act as a catalyst.

The trader saw the 6 7/8% notes due 2024 falling “8 and change” points to 80½.

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