CGG weaker on earnings miss; Nuverra debt pressured by larger loss; Genworth cut to junk

By Stephanie N. Rotondo

Phoenix, Nov. 7 – A round of earnings Friday pushed several names downward, one distressed debt trader reported.

One name was CGG SA, a seismic data services provider for the oil and gas industry. A trader said the company’s debt had popped on Thursday as certain covenants were eased. But earnings out Friday missed expectations and the bonds fell over 2 points.

In other oil and gas related names, Samson Investment Co.’s 9¾% notes due 2020 closed up almost 2 points at 75.

Nuverra Environmental Solutions also reported earnings – on Thursday – and the disappointing figures pushed the paper down about 6 points from the last trades seen two to three weeks ago.

Meanwhile, Genworth Financial Inc.’s bonds were “starting to come into us,” a high-yield trader said, noting that the name had previously been traded solely on the investment-grade desks. But a round of weak earnings earlier in the week – followed by a round of ratings downgrades – put pressure on the debt.

But the news wasn’t bad for every name.

Sears Holding Corp. is reportedly considering selling off 300 of its stores to a real estate investment trust in an effort to raise cash. That news helped the company’s debt gain ground.

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