Concordia firms post-earnings; Hexion results weigh on debt; Petsmart gets a bounce

By Stephanie N. Rotondo

Seattle, Aug. 11 – As has been the case of late, fresh earnings were the main driver of distressed bonds on Friday.

Concordia International Corp. posted its results early in the day, reporting figures that were lower year over year. However, the company said it believed it had enough cash and cash flow to meet its needs for the next year.

In response, the company’s 9% notes due 2022 edged upward.

Hexion Inc. also reported ahead of the market’s open. A trader said the company’s debt “started trading early,” with the bonds losing ground in the wake of the results.

Meanwhile, recently topical names remained in play.

Petsmart Inc.’s bonds “had a little bounce back,” a trader said, following weakness tied to news of a management shakeup on Thursday.

The trader saw the 7 1/8% notes due 2023 ticking up almost a point to 86, while the 5 7/8% notes due 2025 inched up a quarter-point to 92˝.

The Phoenix-based pet product retailer announced on Wednesday that Michael Massey, its chief executive officer, was leaving the company after two years on the job.

There were also “lots of trades” in Valeant Pharmaceuticals International Inc.’s 6 1/8% notes due 2025, according to a trader.

The debt has been busy since reporting earnings earlier in the week.

Frontier Communications Corp. was also on the active side, though without any fresh news to act as a catalyst.

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