iHeart up after several downtrodden sessions; Valeant, Concordia slip again; Neiman flat

By Colin Hanner

Chicago, March 20 – iHeartCommunications Inc.’s retreat came to an end Monday after a streak of poor sessions following plans for a private debt exchange. Several of the company’s issues were up after the weekend respite, traders said.

Though there was no apparent reasons for the sudden upswing, iHeartCommunications, Inc. was up across several issues, especially one that traded several points higher after being down more than 1 point on Friday.

But Valeant Pharmaceuticals International Inc. – down on Friday and most of the last week – continued its losing ways on Monday, mirroring similar 1 point losses from past sessions.

Other than those two issues, traders said volume seemed on the low end on Monday.

“I don’t know why it was so quiet,” a sellside trader said of activity in the distressed market. “There was very little notable volume at all. There was not a lot of anything that was active. I don’t know if people had the NCAA [basketball] hangover or what.”

Valeant’s fellow Canadian pharmaceutical company Concordia International Corp. followed with a marginal loss to new lows, prompting one trader to say they were “close to worthless.”

As oil futures continued to fall in the global markets, exploration and production-related companies were mixed, though trended down, traders said, with several companies, including Pacific Drilling SA and GulfMark Offshore Inc., trading down fractions of a point on the day.

In the energy sphere, two electricity names fell marginally on the session.

Retailer Neiman Marcus Group Inc. was flat on the day, Intelsat SA and its subsidiaries were down and Walter Investment Management Corp. was up on an otherwise unusually quiet day that was reflected in other markets.

iHeart upbeat

For San Antonio, Texas-based radio broadcaster and outdoor advertiser iHeartCommunications, movement flipped with the start of the new week, but one sellside trader said there was no concrete reason for the rebound.

“They were under pressure all last week,” a trader said. “Maybe they had some guys who said enough downward pressure and started buying it,” thereby reversing the trend seen for the better part of last week.

The issuer’s 9% notes due 2021 were “swinging to the upside” and up ¾ point to 76, a trader said, though another desk said the notes were up 3 points to the same handle.

The 11¼% notes due 2021 were up 3¾ points to 80 on almost a dozen trades, a trader said.

Last week, the company announced a private exchange offer for five series of priority guarantee notes and senior notes due 2021 in connection with a proposed debt restructuring, as well as debt exchange offer to lenders under the company’s term loan D and term loan E facilities.

Fitch Ratings and Standard & Poor’s downgraded the company following the announcement last week.

Valeant sinks again

The woes continued for Valeant Pharmaceuticals on Monday, as its 6 1/8% notes due 2025 trekked down 5/8 point to 73¾, a trader said.

Another trader said the notes were off ½ point to ¾ point to a 73 handle.

The 5 7/8% notes due 2023 were “active,” a trader said, and were down 1 point to 74¼.

Similar movement was seen for Oakville, Ont.-based Concordia International, which one trader called “close to worthless.”

The 7% notes due 2023 were down ¼ point to 22¼.

E&P trends down

As contracts for West Texas Intermediate dipped more than 1% to $48.22, several E&P and related companies were down on the session.

Luxembourg-based offshore ultra-deepwater drilling company Pacific Drilling’s 7¼% notes due 2017 were down ¼ point to 53½, a trader said.

And Houston-based marine transportation service company GulfMark Offshore’s 6 3/8% notes due 2022 were down ½ point to 50.

Neiman unchanged

Amid reports that it may be the latest acquisition target for Hudson’s Bay Co. – one of the many avenues the company may take – struggling retailer Neiman Marcus was flat on the day, according to several traders.

The 8% notes due 2021 were unchanged at 59¼.

Electric mixed

Akron, Ohio-based energy company FirstEnergy Corp. was down ¼ point in its 6.8% notes due 2039, which settled with a 36½ handle, a trader said.

Houston-based GenOn Energy Inc., a subsidiary of NRG Energy Inc., was up ¼ point in its 7 7/8% notes due 2017, which rose to 75¼.

The 9½% notes due 2018 were down ½ point to 70½, a market source said.

One-off roundup

Tampa, Fla.-based residential mortgage servicing company Walter Investment Management’s 7 7/8% notes due 2021 were up 1 point to 64 1/8, the second-consecutive session of gains following its poor fourth quarter results, a trader said.

Williamsville, New York-based supermarket operator Tops Holding LLC’s 8% notes due 2022 were down 1¼ points to 77.

Luxembourg-based communication satellite service provider Intelsat Luxembourg Holdings SA’s 8 1/8% notes due 2023 were down ¾ point to 60¼.

And Intelsat Jackson Holdings SA’s 7½% notes due 2021 were down ½ point to 60½.

© 2015 Prospect News.
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