Sears trades up on Amazon tire agreement; DISH falls again after disappointing earnings report

By James McCandless

San Antonio, May 9 – Traders reported moderate activity in the distressed debt market on Wednesday, led by news-driven names.

Sears Holdings Corp. notes traded up after the company announced a partnership with Amazon to install tires delivered from the internet service.

DISH Network Corp. issues fell further after the company reported earnings below expectations and falling subscriber numbers Tuesday.

Sanchez Energy Corp. paper bounced back after the company reported an earnings loss for Q1 on Tuesday.

Intelsat SA notes climbed. Last Tuesday, the company posted a disappointing Q1 report. Frontier Communications Corp., another telecom name posting less than stellar Q1 numbers last Tuesday, saw issues mixed. Mallinckrodt plc paper declined.

Sears gains on tire deal

Hoffman Estates, Ill.-based department store chain Sears’ notes traded up, according to market sources, after the company announced a tire partnership with Amazon.com, Inc. The deal lets consumers purchase tires on Amazon’s website and have them shipped to a Sears Auto Center, where they can be installed.

The service is being piloted at 47 Sears Auto Center locations, and will be offered at all 400 Auto Centers in the coming weeks.

“Their bonds were good today,” a trader said. “But this isn’t something that’s going to save them. It’s an interesting move, but I don’t see it making a difference in their bottom line.”

The 6 5/8% notes due 2018 gained about ¾ point to close at around 87¼ bid. The 8% notes due 2019 rose 2¼ points to close at 54 bid.

DISH slides again

Englewood, Colo.-based pay-TV provider DISH Network issues traded down again as the market continues to react to its Q1 report from Tuesday, traders confirmed. The company posted Q1 earnings of 70 cents per share, 2 cents below analyst predictions.

It also reported a subscriber count of 13,148,000, down from 13,528,000 in the previous quarter.

The 5 7/8% notes due 2024 fell about ¼ point to close at around 83¾ bid. The 7¾% notes due 2026 shaved off about ½ point to close at around 88¾ bid.

On Tuesday, the 5 7/8% notes lost about 5½ points, and the 7¾% notes dropped 2¼ points.

Sanchez up

Houston-based independent oil and gas producer Sanchez Energy paper gained back some of the losses experienced yesterday, market sources said, after the company posted disappointing Q1 numbers on Tuesday.

Earnings were reported as a 5 cents per share loss after analysts expected a profit of 22 cents per share. It also reported an average of 80,572 barrels of oil a day against an estimate of 82-84,000.

The 6 1/8% paper due 2023 rose about 2¼ points to close at around 68¾ bid.

The 6 1/8% paper lost about 6½ points on Tuesday.

Volume names trade

Luxembourg-based satellite communications company Intelsat’s notes gained on the day. The company reported a 56 cents per share loss in last Tuesday’s Q1 report, missing analyst predictions of 41 cents per share.

The Intelsat (Luxembourg) SA 7¾% notes due 2021 rose 1½ points to close at 73 bid. The 8 1/8% notes due 2023 gained ½ point to close at 66¼ bid.

Norwalk, Conn.-based wireline telecom name Frontier Communications’ issues were mixed. Last week, the company reported a Q1 loss of 58 cents per share and $2.2 billion in revenue, surpassing analyst estimates.

The 7 5/8% notes due 2024 gained about 1¾ points to close at around 71½ bid. The 10½% notes due 2022 shaved off about ½ point to close at 91 ¼ bid. The 11% notes due 2025 traded down about ¼ point to close at 81¼ bid.

Britain-based drug maker Mallinckrodt saw its paper fall. On Tuesday, the company reported its earnings per share at $1.31, 22 cents better than the $1.09 expected by analysts.

The 4¾% paper due 2023 dropped about 2 points to close at around 72¾ bid.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.