Bristow mixed on Monday’s after-hours news; Pyxus gains on third-quarter results

By James McCandless

San Antonio, Feb. 12 – More earnings releases across the distressed space continue to dominate activity.

Bristow Group Inc.’s notes were mixed after the company announced an earnings loss late Monday and the termination of its acquisition of Columbia Helicopters.

Elsewhere in the sector, PHI, Inc.’s issues were volatile, eventually settling back to Monday’s levels.

Improving oil futures spurred similar movements in California Resources Corp.’s, Sanchez Energy Corp.’s, and Ensco plc’s paper

Meanwhile, tobacco name Pyxus International Inc.’s notes were higher despite reporting a loss for the third quarter.

Retailer Neiman Marcus Group Inc.’s issues were higher amid news that the company is trying to jump-start restructuring talks.

L Brands, Inc.’s paper gained in response to the release of its January sales figures.

Electric utility PG&E Corp.’s notes continued to rise.

Bristow mixed

Bristow’s notes were mixed in Tuesday’s session, traders said.

The 8¾% notes due 2023 picked up 2¾ points to close at 75¼ bid. The 6¼% notes due 2022 plummeted 11¼ points to close at 23¾ bid.

In after-hours trading on Monday the 8¾% notes dropped 10 points and the 6¼% notes crashed 13½ points.

S&P Global Ratings downgraded the Houston-based offshore helicopter company’s issuer credit rating, unsecured debt rating and secured debt rating, citing a rapid decline in liquidity.

On Monday, the company’s notes garnered attention after it released its third-quarter report.

It reported a 57 cents per share loss, outpacing analyst predictions of a 59 cents per shares loss.

Accompanying the release was the announcement that the company had terminated its proposed $560 million acquisition of Columbia Helicopters.

The deal was announced in November and was marred by delays and stakeholder skepticism

The company was working up until late Friday to work toward closing the deal, trying to secure a bridge loan to finance it.

“It looks like they’re headed for the door,” a trader said. “This sector has been shaky and it was a matter of time before someone got knocked off.”

PHI level

Despite the weakness in the space, PHI’s issues were volatile but level, market sources said.

The 5¼% notes due 2019 oscillated between 69 bid and 71 bid before settling back at 69¾ bid, according to Trace data.

The Lafayette, La.-based offshore transporter is also facing tightening liquidity as its 5¼% notes come closer to their March maturity date.

Oil names gain

Positive results in crude oil futures led to concurrent gains for distressed oil names.

Los Angeles-based independent oil and gas producer California Resources’ paper was on the rise.

The 6% paper due 2024 rose 4¼ points to close at 70¼ bid. The 8% paper due 2022 gained 1 point to close at 77¾ bid.

Houston-based sector peer Sanchez Energy’s notes were also positive.

The 6 1/8% notes due 2023 jumped 2 points to close at 19 bid.

London-based contract driller Ensco’s issues followed oil upward.

The 7¾% notes due 2026 gained 4 points to close at 84¼ bid. The 7.2% notes due 2027 rose 3 points to close at 80½ bid.

West Texas Intermediate crude oil futures for March delivery closed the session 69 cents higher to $53.10 per barrel.

North Sea Brent crude futures closed at $62.42 per barrel after a 91-cents rise.

Pyxus up

Elsewhere, Pyxus’ paper walked a positive path, traders said.

The 9 7/8% paper due 2021 added 2 points to close at 86 bid.

After the Monday close, the Morrisville, N.C.-based tobacco company reported a 56 cents per share loss for the third quarter.

It also reported that its efforts to establish itself in the cannabis product market were ongoing.

Neiman Marcus, L Brands higher

Meanwhile, in the retail space, Neiman Marcus’ notes were higher, market sources said.

The 8% notes due 2021 picked up 2½ points to close at 47¼ bid. The 7 1/8% notes due 2028 added 3 points to close at 83½ bid.

News broke Tuesday that the company is working to restart restructuring talks with its creditors as it faces a term loan maturing next year.

Talks had stalled in recent months as a legal dispute brewed over its private equity transfer of e-commerce segment MyTheresa.

“The company is talking like everything’s normal but that elephant in the room hasn’t left,” a trader said.

Columbus, Ohio-based sector peer L Brands’ issues were also moving up.

The 6¾% notes due 2036 gained 1½ points to close at 86½ bid. The 5¼% notes due 2028 edged up ¼ point to close at 88¾ bid.

It reported net sales of $780.1 million, a 25% decrease from the same period last year.

PG&E gains

In utilities, PG&E’s paper maintained its recent positive run, traders said.

The 6.05% paper due 2034 rose 1½ points to close at 90 bid.

On Monday, the San Francisco-based bankrupt electric utility announced that following its May shareholder meeting only five of its current board members would remain in their posts.

Large investor BlueMountain Capital Management LLC has called for the replacement of the entire board.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.