Distressed bonds trade lower amid muted liquidity; Petsmart, Frontier again active, softer

By Stephanie N. Rotondo

Seattle, Aug. 22 – The end-of-summer-doldrums continued to weigh on distressed debt trading on Tuesday.

There also appeared to be a weaker tone among the distressed issues that were trading.

Petsmart Inc. was again active, according to a trader. He saw the 8 7/8% notes due 2025 falling almost a point to 83½, while the 7 1/8% notes due 2023 dropped a point to 83.

The 5 7/8% notes due 2025 were meantime also down almost a point at 89 3/8.

There hasn’t been any fresh news out on the pet products retailer since the company announced the departure of its chief executive officer on Aug. 10.

Meanwhile, Frontier Communications Corp. remained a go-to name. And, as has been the case of late, the bonds were lower once more.

A trader pegged the benchmark 11% notes due 2025 at 82½, a loss of half a point.

However, he said the 10½% notes due 2022 edged up a hair to 86 3/8.

At another desk, the 7 5/8% notes due 2024 were deemed down nearly a point at 75½.

As for sector peer Windstream Holdings Inc., its 6 3/8% notes due 2023 were seen declining 2¼ points to 75½ bid.

In the mining arena, Murray Energy Corp.’s 11¼% notes due 2021 slid nearly a point to 69, a trader reported.

Given that the company is private, there was little news seen to explain the downward move.

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