Pyxus notes decline after reporting Q3 loss; WeWork gains as profitability promised

By James McCandless

San Antonio, Feb. 11 – Tuesday’s distressed debt session ended with a focus on the newsmakers of the day with the telecom space remaining active.

Pyxus International, Inc.’s notes fell after the company showed a loss in its third-quarter earnings results.

The 9 7/8% notes due 2021 declined by 2¾ points to close at 54½ bid. The 8½% notes due 2021 shed 2¾ points to close at 97 bid.

After the close on Monday, the Morrisville, N.C.-based tobacco products name released its earnings results for the third quarter.

The company reported a loss of $2.40 per share, sizably worse than the 56 cents per share profit from this time last year.

A dip in sales led to a 30.7% drop in revenue at $363.3 million.

“They’re betting big on CBD products,” a trader said. “The results have been a mixed bag.”

Meanwhile, real estate name WeWork Cos. Inc.’s issues saw gains as its executives promise profitability by 2022.

The 7 78% senior notes due 2025 jumped up 4¼ points to close at 86½ bid.

On Monday, chairman Marcelo Claure said in an interview on CNBC that he plans for the New York-based coworking startup to become free cash flow positive by 2022, with an added target of $1 billion in free cash flow by 2024.

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