Avaya very active, but unchanged; retail movement mixed; Weatherford up on debt outlook

By Colin Hanner

Chicago, Feb. 2 – Another session of muted activity in the distressed market made the Groundhog Day effect seem quite literal on Thursday, as typical distressed names traded tightly and focus was mainly on movement in the new issues space, a trend of the past few sessions, traders said.

Telecommunications company Avaya, Inc. was “very active” in one series of its distressed notes, traders noted, but that was unchanged on the session.

“When you look at the top-volume names, the only real one was Avaya,” a trader said. “There weren’t many other notables. It is what it is, unfortunately.”

Teetering into the distressed space was retailer L Brands, Inc., which missed earnings on Thursday, and faltered a few points in one of its securities, a trader said. Fellow retailer Neiman Marcus Group, Inc. followed with a drop of its own.

Bucking the trend in distressed retail was apparel retailer rue21, Inc., which traded higher on Thursday.

In the exploration and production arena, Weatherford International plc was undoubtedly one of the biggest gainers on the day following an announcement by the company’s management it plans to cut its net debt by several billion dollars in the next few years.

On the other hand, EP Energy Corp. was down several points on the distressed front after the company priced new senior notes on Wednesday’s session.

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