Intelsat mixed, most active in distressed space; Valeant continues rebound; iHeart up across board

By Colin Hanner

Chicago, March 2 – Activity was hit-and-miss in the distressed market on Thursday, traders said, with more of the same volume-heavy movement coming from notables headlining the past few sessions.

It’s been “a lot of the same names that’ve been trading all week,” a trader said, adding that new issues in the high-yield space took up a bulk of attention on the day.

Intelsat SA had the most resounding active issues on the day, though its subsidiaries traded with a “mixed bag” of movement, a trader said.

News of a merger between the satellite telecommunications company and OneWeb LLC late in the day on Monday caused Intelsat stocks to plummet and bonds to rise for most of the week.

Issues of Valeant Pharmaceuticals International, Inc. were up and down fractionally on “good volume,” a trader said, several sessions after the Candian pharmaceutical company announced its fourth quarter results.

Also mixed was California Resources Corp., surprising one trader who said he expected to see mostly declines on a day that saw steep declines in oil future prices as the U.S. continues to contribute to a glut of oil that the Organization of Petroleum Exporting Countries is seeking to reduce.

Media company iHeartCommunications, Inc. traded higher in two issues, retailer Neiman Marcus Group, Inc. saw movement in both directions in what a trader said was a “breather” from the gains it has seen in recent sessions and private coal company Murray Energy Corp. lost nearly all of its gains from Wednesday.

Intelsat mixed

There was some profit taking going on with some of Intelsat subsidiaries on Thursday, a trader said, as several issues traded down off recent highs in an unusually rambunctious week.

Nonetheless, Intelsat issues continued to be the “most active” in the distressed arena.

Intelsat Jackson Holdings SA’s 5½% notes due 2023 were up 1 point to 86 3/8, a trader said, and the 7½% notes due 2021 were up ¼ point to 93.

The 7¼% notes due 2020 were unchanged at 93¾.

A trader characterized the Jackson-held bonds as a bit “sideways” and a “smidge off the tops today.”

Intelsat Luxembourg Holdings SA, on the other hand, was noticeably down, specifically the 8 1/8% notes due 2023, which were down 3¾ points to 57¼, a trader said.

And Intelsat Connect Finance SA’s 12½% notes due 2022 were down 1½ to 2 points to 90, a trader said.

‘Smidge weaker’ Valeant

Seeing a good amount of volume, Valeant Pharmaceuticals saw a ½-point decline in its 6 1/8% notes due 2025, which finished with an 80 handle, a market source. Since Monday, the notes are down 1½ points.

Another market source said the 7½% notes due 2021 were up ¼ point to 93¾.

On Tuesday, the company announced its fourth quarter results, and the notes saw multi-point declines but have steadily gained in the past two sessions.

E&P mixed despite down oil

Oil stockpiles increased on the biggest weekly gain in more than 30 years on Wednesday, leading oil future prices to deflate by nearly 2%.

Movement for California Resources Corp., whose issues tend to trade in line with the price of oil, were mixed on the day, a trader said.

The 8% notes due 2022 were down 1 point to 85, the trader said, though the 6% notes due 2024 were up 2 points to 76.

And a trader said offshore driller Noble Holding International Ltd.’s 7¾% notes due 2024 were down “almost 1” point to 96½.

iHeart strong

Across the board, iHeartCommunications was stronger on Thursday, led by the 11½% notes due 2021, which were up 1 point to 85, a trader said.

Following were the 14% notes due 2021, which saw a ½-point gain to 81½.

And the 14% notes due 2021 were up ½ point to 39½, a trader said.

Neiman takes a ‘breather’

Up for the better part of the week, Neiman Marcus Group’s 8% notes due 2021 were down 1½ points to 63 on Thursday, taking a “breather” on the session, a trader said.

Meanwhile, the 8¾% notes due 2021 were up ½ point to 60.

Distressed round-up

After a 1-point gain on Wednesday, St. Clairsville, Ohio-based Murray Energy Corp.’s 11¼% notes due 2021 were down 7/8 point to 80, a trader said.

And global shipper Navios Maritime Holdings, Inc.’s 7 3/8% notes due 2022 were unchanged at 76½.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.