Murray Energy up modestly on otherwise inactive day; Neiman Marcus, Avaya down; Intelsat, iHeart mixed

By Colin Hanner

Chicago, Feb. 7 – Activity continued to be sparse in the distressed arena on Tuesday, traders said, with one of the most active issues coming out of the coal space – and not one that has been making headlines recently.

“It was a little thin today,” a trader said.

“Still most of the focus [is] on new issues,” another trader said. “Post [Holdings Inc.] is very active, as well as some of the other recent names.

St. Clairsville, Ohio-based Murray Energy Corp. was up slightly on good volume, a market source said, as the coal industry continues to wait for a Trump administration action on the sector.

Avaya, Inc. was down in one series of bonds after trading up the past couple of days, a trader said.

Retailer Neiman Marcus Group, Inc. continued its declining trajectory and was off more than usual in one of its two distressed issues.

Movement was mixed for several issues of satellite telecommunications company Intelsat Jackson Holdings SA, though none veered outside of a point in either direction.

Navios Maritime Holdings, Inc. picked up more steam after a slight increase on Monday, offshore driller Noble Corp. was down in several issues, distressed and regular high-yield, alike, and iHeartCommunications, Inc. was unchanged on the session.

Murray up, but not much

The repeal of a stream protection rule last week, which allows for coal companies to dump waste into steams, seemed to signify the type of relationship the Trump administration and coal producers will have this term.

In a recent Bloomberg article, Robert E. Murray, founder of Murray Energy, said he expects Trump to act on campaign pledges to help the coal industry “in three months.”

Murray’s 11¼% notes due 2021 were up on the day as one of the most active issues, a trader said. They traded up ¼ point to 73¾ on the session.

The issue has fluctuated in the 70-range since the election.

Elsewhere in the coal sector, a market source said Peabody Energy Corp.’s 6½% notes due 2020 were up ¾ point to 41¾.

Neiman’s struggles continue

The brick-and-mortar Neiman Marcus Group seems unable to stop the hemorrhaging.

Against the rising trend of e-commerce and the decreasing need for traditional storefronts, Neiman’s 8% notes due 2021 posted a loss again on Tuesday, a 1¾-point decline to 58¾, a market source said.

Avaya down

After a few sessions of trending higher, Avaya, Inc. reversed course on the session.

The 7% notes due 2019 “dipped back a point” to the 87½ to 87¾ area.

Intelsat mixed

It was a day of tight trading for Intelsat Jackson Holdings, and activity seemed to be down from recent highs.

Intelsat’s 5½% notes due 2023 were down ¼ point to 70, a trader said, while the similarly linked 7¼% notes due 2019 were down 1/8 point to 86, a market source said.

Rounding out the overs was a gainer on the session, the 7½% notes due 2021, which were up a little more than ¼ point to 78, a market source said.

A blend for E&P

GenOn Energy Corp. saw movement in both directions on Monday, and a day later, the same issue that gained slightly was up even higher.

The 9½% notes due 2018 were up 1¼ points to 78¾, a market source said, a 2-point gain on the week.

Geophysical service company CGG SA was up slightly in its 6½% notes due 2021, a ¼-point gain to finish with a 46 handle.

And offshore driller Noble Holdings International Ltd. (Noble Corp.) had declines in several of its issues, including the 5¼% notes due 2042, which were down 1/8 point to 73, a trader said.

Drifting into pure high-yield were the 7¾% notes due 2024, which were down 1 point to 98¼, and the 4.9% notes due 2020, which were down ¼ point to “par and a quarter,” a trader said.

Noble Corp. will hold its fourth quarter earnings conference call at 7 a.m. on Friday.

Distressed wrap-up

For the second-straight session, Navios Maritime Holdings’ 7 7/8% notes due 2022 were up 1½ points to 73 7/8, a trader said.

Two sets of iHeartCommunications, Inc. were mixed on the day.

The 9% notes due 2021 were down ¼ point to 75½, a market source said, while the 14% notes due 2021 were unchanged at 36¾.

And tobacco merchant Alliance One International’s 9 7/8% notes due 2021 were down ¼ point to 85½, a trader said.

© 2015 Prospect News.
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