Valeant mixed as Philidor cast aside; latest earnings weighing on Murray, Consol, Intelsat

By Stephanie N. Rotondo

Seattle, Oct. 30 – The distressed debt market ended the week – and the month – with a negative tone as investors continued to react to both credit-specific news as well as earnings reports.

Valeant Pharmaceuticals International Inc. was in the news again on Friday, announcing that it was severing ties with Philidor, a specialty pharmacy.

The bonds traded actively on the news but mixed for the day.

A trader saw the 6 1/8% notes due 2025 trading “85 times,” rising just a quarter-point to 85. However, he said the 5 7/8% notes due 2023 fell a shade to 85½, as the 6¾% notes due 2018 slipped a quarter-point to 96¼.

Another market source placed the 7½% notes due 2021 at 91¾ bid, down over 2 points on the day.

Meanwhile, earnings from earlier in the week continued to put pressure on names like Murray Energy Corp., Consol Energy Inc. and Intelsat SA.

A trader said Murray Energy’s 11¼% notes due 2021 dropped nearly 7 points on the day, finishing around 29¾.

Another trader said the name was “down a bunch more, almost 10 [points],” trading around 27.

A trader pegged Consol Energy’s 5 7/8% notes due 2022 at 64, down 4 points.

Another trader said the paper hit a low of 63½, but went out in a 64 to 65 context.

A trader called Intelsat’s 8 1/8% notes due 2023 off 5 points at 29¾. A second trader said the 7¾% notes due 2021 was “down a few points” at 60.

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