Elizabeth Arden debt pops on Revlon merger news; Cliffs steady; oil price rally boosts energy sector

By Stephanie N. Rotondo

Seattle, June 17 – A trader said Elizabeth Arden Inc. was the day’s “most notable” name on Friday, after Revlon announced it was buying the beauty products company for $419.3 million in cash.

Not only were the company’s bonds actively traded during the session, but the debt jumped well over 20 points on the day.

“That was a home run,” he said, characterizing Elizabeth Arden as a “distressed consumer products company.”

Meanwhile, Cliffs Natural Resources Inc.’s 3.95% notes due 2018 continued to be active following Thursday’s reports that the company planned to sell up to $300 million in new equity to take out the debt.

However, a trader said the paper was “still around the 96 level,” where it had traded up to on Thursday.

Among other commodity names, California Resources Corp.’s 8% second-lien notes due 2022 were “back up a bunch” as domestic crude oil prices rallied.

A trader pegged the issue in a 68½ to 69 context.

At another shop, Chesapeake Energy Corp.’s 6 5/8% notes due 2020 were seen up nearly 3 points at 73¼.

As for oil, it was up 4.15% on the day, closing at $48.13 a barrel. The gains came as Brexit fears eased. The market even shrugged off new data from Baker Hughes that showed nine more active U.S. drill rigs were added last week.

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