Valeant up across board post-refinancing news; Community Health up; Neiman, Intelsat down

By Colin Hanner

Chicago, March 6 – The distressed market took a breather following the weekend, traders said, as last week’s headlines affecting distressed companies’ movement seemed to dissolve and much of the focus in the high-yield space went more toward new issues.

“There were a bunch of new issues last week,” a trader said. “Those are still trading, and there are still a lot of eyeballs on new issues.”

Though not trading wildly one way or the other – as Intelsat SA and Neiman Marcus Group, Inc. did last week – Valeant Pharmaceuticals International, Inc. saw some heightened activity following an announcement that it will refinance its credit agreement, borrow new term B loans under the agreement and issue new debt securities.

Bonds were up across the board for the Candian pharmaceutical company.

In the hospital sector, Community Health Systems, Inc. was up incrementally following Friday’s tender offer announcement for its 5 1/8% notes due 2018.

Geoscience company CGG SA did an about-face on Monday, trading down several points following its fourth quarter results.

Intelsat followed last week’s active streak with a quieter tone, traders said, as did Neiman Marcus Group, which saw one trade that brought it down again following Reuters having reported Friday that it plans to bring in outside help to “explore ways to bolster its balance sheet as it seeks relief from $4.9 billion in debt.”

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