Bristow notes higher after earnings release; Revlon issues see boost after positive earnings

By James McCandless

San Antonio, Nov. 9 – The week in distressed trading came to a close with a continued focus on third-quarter earnings.

Bristow Group Inc.’s notes rose slightly after reporting third quarter earnings, an acquisition and the retirement of its chief executive officer.

Sector peer Sanchez Energy Corp.’s issues fell after the company received a ratings downgrade.

California Resources Corp. paper was mixed while Denbury Resources Inc. and Parker Drilling Co.’s notes moved lower.

Away from oil, propane name FerrellGas Partners, LP’s issues were also negative after a ratings downgrade.

In retail, Revlon, Inc.’s paper jumped after the company surpassed analyst estimates for its third-quarter earnings release.

Elsewhere in the sector, PetSmart, Inc. and J.C. Penney Co., Inc.’s notes declined.

Bristow up

Bristow Group’s notes ended the week higher, traders said.

The 6¼% notes due 2022 rose ¼ point to close at 70¾ bid.

The Houston-based offshore aviation name released its third-quarter earnings report on Friday morning.

The company reported a loss of 78 cents per share against analyst estimates of a 69 cents per share loss, also reporting $350.66 in revenues.

Along with the earnings, the company announced that it would be acquiring Columbia Helicopters, Inc. for $560 million and that CEO Jonathan Baliff would be retiring in the coming months.

“That’s going to be a topical name going forward,” a trader said. “They got a lot of attention today as well.”

The company has obtained a commitment letter for a $360 million bridge loan to partially finance the acquisition, Prospect News reported.

Elsewhere in energy, Sanchez Energy’s issues declined.

The 6 1/8% notes due 2023 dropped 1 point to close at 37 bid.

Early Friday, Standard & Poor’s lowered the Houston-based independent oil and gas producer’s issuer credit rating, issue-level ratings and affirmed a negative outlook.

Los Angeles-based peer California Resources’ paper ended mixed.

The 6% paper due 2024 lost 1¾ points to close at 78½ bid. The 8% notes due 2022 added ½ point to close at 87¾ bid.

Houston-based producer Denbury’s notes declined.

The 5½% notes due 2022 fell 1½ points to close at 84½ bid. The 6 3/8% notes due 2021 shed 1½ points to close at 92¾ bid.

On Thursday, the company reported a 13 cents per share profit for the third quarter, surpassing analyst predictions of 11 cents per share.

Parker Drilling’s issues continued to tank.

The 6¾% issues due 2022 dropped 4½ points to close at 58 bid.

On Thursday, the 6¾% issues lost 1¾ points.

The Houston-based contract driller reported a $2.99 loss per share for the third-quarter.

FerrellGas lower

Away from oil, FerrellGas’ paper trended negative, market sources said.

The 6¾% paper due 2022 shaved off 3 points to close at 85½ bid. The 6¾% paper due 2023 lost 1½ points to close at 86¾ bid.

On Friday, S&P lowered the Overland Park, Kan.-based propane name’s issuer credit rating, issue-level ratings and affirmed a negative outlook.

The notes have been weaker recently amid a string of acquisitions and a disappointing fourth-quarter earnings report.

Revlon jumps

In retail, Revlon’s notes jumped, traders said.

The 5¾% notes due 2021 rose 3¼ points to close at 82½ bid. The 6¼% notes due 2024 jumped 7¼ points to close at 62 bid.

The New York City-based cosmetics producer released its third-quarter earnings on Friday morning, showing a profit of 14 cents per share, far greater than the 40 cents per share loss that analysts were anticipating.

Revenues were reported at $655.4 million.

“That was a surprise to everyone considering their revenue problems from the beginning of the year and the general weakness in retail,” a trader said.

Elsewhere in the sector, Phoenix-based pet supplies retailer PetSmart’s issues fell.

The 5 7/8% notes due 2025 lost 1 point to close at 79 bid.

Plano, Texas-based department store chain J.C. Penney’s 8 5/8% paper due 2025 dropped 2 points to close at 67 bid.

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