Altice notes rise after company sells stake in fiber unit; Ferrellgas issues end week on upward swing

By James McCandless

San Antonio, Nov. 30 – The distressed debt space saw a mixed day to end the week in trading.

Altice SA’s notes rose after the company announced the sale of a 49.99% stake in its French fiber optics arm.

Elsewhere in telecom, Intelsat SA’s issues declined.

Meanwhile, in the energy space, Ferrellgas Partners, LP’s paper improved after a few weeks of negative attention.

In oil, Petroleos de Venezuela SA’s notes were mixed on increased attention as the company retains control of Citgo.

As oil futures declined, so did the notes of California Resources Corp., Hi-Crush Partners LP and Sanchez Energy Corp.

In retail, PetSmart, Inc.’s paper fell while L Brands, Inc. notes gained.

Altice rises

Altice’s notes were climbing Friday, traders said.

The 7 5/8% notes due 2025 added 1½ points to close at 81 bid.

Early Friday, news broke that the Amsterdam-based telecom name announced that it had agreed to sell a 49.99% stake in its French fiber optics unit to a group of three buyers for $2.05 billion.

The company’s notes have been under pressure recently after Altice posted mixed results for the most recent quarter, showing little improvement in its $34 billion debt and a growth in subscribers in France.

“They’re looking for growth solutions right now,” a trader said. “This might be a good first step.”

Elsewhere in telecom, Luxembourg-based satellite operator Intelsat’s issues went negative.

Intelsat Jackson Holdings SA’s 5½% notes due 2023 fell ¼ point to close at 88¾ bid. Intelsat (Luxembourg) SA’s 8 1/8% notes due 2023 dropped ¾ point to close at 82½ bid.

After the close Wednesday, a group of shareholders offered up 10 million common shares in a sale.

Ferrellgas better

Ferrellgas’ paper ended the week better, market sources said.

The 6¾% paper due 2022 rose 2 points to close at 84½ bid. The 6¾% paper due 2023 picked up ¼ point.

On Thursday, the 6¾% notes lost 1¼ points.

The Overland Park, Kan.-based propane supplier has come under negative scrutiny in recent weeks; its chief financial officer and chief operating officer announced their departures last week.

The company also disclosed recently that it would be halting quarterly cash distributions.

PDVSA mixed

Meanwhile, in oil, Petroleo de Venezuela’s notes were mixed Friday, traders said.

The 9% notes due 2021, while falling below 19 bid in intraday trading, ended level at 19¼ bid, according to Trace data. The 6% notes due 2026 rose ½ point to close at 16½ bid.

“There’s been some heightened trading on this one this week,” a trader said.

Earlier this week, the Caracas, Venezuela-based oil company successfully settled a lawsuit that could have stripped the company of its ownership of Citgo.

A decline in oil futures led to concurrent declines in popular distressed oil tranches.

Los Angeles-based independent oil and gas producer California Resources saw its 8% notes due 2022 lose ¾ point to close at 78 bid.

Houston-based energy logistics name Hi-Crush’s 9½% paper due 2026 fell 1½ points to close at 82½ bid.

Houston-based producer Sanchez Energy’s notes were also lower.

The 6 1/8% notes due 2023 shaved off ¼ point to close at 26½ bid. The 7¾% notes due 2021 lost 1½ points to close at 29 bid.

On Friday, West Texas Intermediate crude oil futures for January delivery lost 52 cents to close at $50.93 per barrel. North Sea Brent crude futures went lower by 80 cents to close at $58.71 per barrel.

PetSmart down

In retail, PetSmart’s issues were declining, market sources said.

The 5 7/8% notes due 2025 traded down ½ point to close at 76½ bid.

The Phoenix-based pet supplies retailer’s notes have been on a negative path recently, set off by a spat with creditors over an equity transfer of e-commerce segment Chewy.com into private hands.

“The retail space is still shaky,” a trader said. “It feels like people are placing their bets as we head further into the holiday shopping period.”

Columbus, Ohio-based retailer L Brands’ 5¼% paper due 2028 added ¼ point to close at 88¾ bid.

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