Valeant results beat, bonds firm; Endo earnings better; Depomed convertibles tank

By Stephanie N. Rotondo

Seattle, Aug. 8 – Earnings were the focus of the distressed debt market on Tuesday, as Valeant Pharmaceuticals International Inc. and Endo International plc released results.

Valeant reported better-than-expected results for the quarter, but it also cut revenue guidance for the year. Still, its bonds were “up kind of smartly,” a trader said.

As for Endo, it also beat expectations but lowered its full-year guidance.

Like Valeant, its debt also gained ground.

Over in the distressed convertible bond arena, Depomed Inc. paper was actively traded during the session, also in the wake of results.

While the figures didn’t beat expectations, they were at least in line. But the company’s 2.5% convertible notes due 2021 got hammered nonetheless.

In the oil and gas space, Denbury Resources Inc. came out with numbers that surpassed analysts’ expectations. However, its debt was “a little mixed,” according to a trader.

California Resources Corp.’s 8% second-lien notes due 2022 were meantime “down again,” a trader said, seeing the paper falling 1½ points to 58¼.

Another market source called the bonds down 2¼ points at 59¼ bid.

For its part, domestic crude oil prices were a touch lower on the day, as production reports from OPEC showed higher-than-expected output.

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