Intelsat notes active but level after tender offer ends; Neiman Marcus issues improve

By James McCandless

San Antonio, Sept. 20 – The distressed debt market continued to focus on retail and telecom names.

Intelsat SA’s notes were active but ended level a day after a subsidiary announced the results of a cash tender offer.

Neiman Marcus Group, Inc.’s notes bounced back from earlier weakness after the Monday release of a mixed earnings report.

Sears Holdings Corp.’s paper ended mixed.

Frontier Communications Corp. declined in the telecom space, while American Tire Distributors’ issues fell.

Community Choice Financial Inc.’s paper showed improvement.

Intelsat flat

Intelsat’s notes were level despite the activity surrounding it, traders said.

The Intelsat Jackson SA 5½% notes due 2023 were level at around 91½ bid. The Intelsat (Luxembourg) SA 8 1/8% notes due 2023 were flat at 86 bid.

On Wednesday, the 5½% notes rose about ½ point and the 8 1/8% notes lost ¼ point.

Intelsat Jackson announced the results of a recent cash tender offer for its 7¼% senior notes due 2020 after the market close on Wednesday.

In total, $1,723,269,000 of the aggregate principal amount was validly tendered at the time the offer expired.

Intelsat is a Luxembourg-based satellite communications company.

Neiman Marcus rises

Meanwhile, Neiman Marcus’ issues gained after initial losses earlier in the week, market sources said.

The 8% notes due 2021 added 3¼ points to close at 69 bid. The 7 1/8% notes due 2028 gained 2½ points to close at 84¼ bid.

On Wednesday, the 8% notes rose ¼ point and the 7 1/8% notes lost 4½ points.

On Monday, the company reported rising sales and revenue and a net loss of $75.3 million for the fourth quarter of 2018. Adjusted EBITDA was $56.1 million for the fourth quarter and $477.1 million for the fiscal year, according to a company news release.

“It’s probably the short sellers giving them a bit of a break,” a trader said. “But this one is gonna stay on everyone’s radar for a while.”

Neiman Marcus is a Dallas-based luxury department store chain.

Sears mixed

Elsewhere in retail, Sears’ notes ended mixed on Thursday, a trader said.

The 6 5/8% paper due 2018 picked up 3¼ points to close at 93¾ bid. The 8% paper due 2019 lost about 1¼ points to close at around 35¼ bid.

On Wednesday, the 6 5/8% paper lost about 1 point.

The company showed growing losses in its second-quarter earnings report a week earlier.

The company reported a loss of $4.68 per share, increasing from a loss of $2.33 per share in the second quarter of 2017.

Sears is a Hoffman Estates, Ill.-based department store chain.

Volume names trade

Another distressed telecom, Frontier Communications, saw its notes fall in Thursday trading.

The 7 5/8% notes due 2024 lost 1 point to close at 65 bid. The 10½% notes due 2022 shaved off ¼ point to close at 90 bid. The 11% notes due 2025 dropped ¾ point to close at 79¾ bid.

Separately, Huntersville, N.C.-based tire distributor American Tire saw its notes weaken.

The 10¼% notes due 2022 lost 1½ points to close at 24½ bid.

“Eventually, I see the bonds moving up past 30,” a trader said. “I think if there’s a bottom for it, it’s here.”

In other trading, Dublin, Ohio-based alternative financial services name Community Choice’s paper rose.

The 10¾% paper due 2019 added about ¾ point to close at 78¼ bid.

© 2015 Prospect News.
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