Diebold notes continue tumble after weak earnings; California Resources improves

By James McCandless

San Antonio, Aug. 6 – Trading in the distressed debt market started with volume centered on names with recent earnings reports out.

Diebold Nixdorf, Inc. notes saw another multi-point drop on Monday as the debt continued to react to the company’s report of disappointing earnings last week.

California Resources Corp.’s issues improved. Last week the company released an earnings report that exceeded analyst expectations.

Intelsat SA paper was mixed again. Last Thursday a subsidiary priced a $1.25 billion offering of senior notes.

Frontier Communications Corp. notes were also mixed. Last week the company released disappointing earnings and received a ratings downgrade.

North Canton, Ohio-based connected commerce solutions company Diebold notes saw another multi-point decline, traders said, as the market continued to react to the company’s disappointing earnings release last week.

On Thursday, the company posted a 29 cents per share loss in its Q2 earnings report, surpassing analyst expectations of a 1 cent per share profit.

“I thought the rout was over,” a trader said. “It was poised to start recovering from its previous drop but now it’ll probably hang around the 70’s for a while.”

In trading Monday the 8½% notes due 2024 lost about 11¼ points to close at around 69¾ bid.

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