U.S. Steel notes eyed on lowered guidance; Bombardier trades up after contract news

By James McCandless

San Antonio, Dec. 18 – As the distressed debt space wrapped up the week, manufacturing names were in the forefront.

United States Steel Corp.’s notes varied after the company released fourth-quarter guidance that was lower than previously estimated.

The 6 7/8% senior notes due 2025 pushed up 1¼ points to close at 96½ bid. The 6¼% senior notes due 2026 declined by 1¼ points to close at 90¾ bid.

After the market close on Thursday, the Pittsburgh-based steel producer released its updated guidance for the fourth quarter.

The company now expects to report a loss of 85 cents a share, widening from the consensus estimate of a 54 cent per share loss.

Adjusted EBITDA is slated to come in in the $55 million range.

Meanwhile, manufacturing company Bombardier, Inc.’s paper gained ground after its rail unit won a new contract.

The 7½% senior notes due 2025 rose 1 point to close at 93 bid. The 6% senior paper due 2022 reached up ½ point to close at 98 bid.

Early Friday, news broke that the Montreal-based air and rail builder has won a new contract from Vancouver’s transit authority.

The company will be paid $567.45 million by TransLink to manufacture 205 new rail cars over the course of the next seven years.

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