Revlon mixed as company plans refinancing; Navios issues rise as exchange offer extended

By James McCandless

San Antonio, March 20 – The distressed market saw trading fixed on retail and energy names on Wednesday.

Revlon, Inc.’s notes closed mixed in the wake of an earnings miss and announced plans to refinance $500 million of its debt.

Sector peer Neiman Marcus Group, Inc.’s notes declined a day after a judge dismissed a fraudulent conveyance lawsuit against the name.

Meanwhile, in shipping, Navios Maritime Holdings Inc.’s paper rose after the company announced another extension of an exchange offer.

In energy, Bristow Group Inc.’s notes slipped as concerns of a coming default loom.

A small boost in oil futures led to a similar rise in California Resources Corp.’s and Ensco plc’s issues while Alta Mesa Resources, Inc.’s paper fell.

Telecom names Intelsat SA’s and Frontier Communications Corp.’s notes saw a mixed day.

Revlon mixed, Neiman down

Revlon’s notes ended the Wednesday session mixed, traders said.

The 5¾% notes due 2021 shaved off ¼ point to close at 86 bid. The 6¼% notes due 2024 gained 2¼ points to close at 54¼ bid.

On Monday, the New York City-based cosmetics producer released its fourth-quarter earnings report.

The company showed an 86 cents per share loss, well below analyst expectations of a 15 cents per share loss.

Revenues were posted at $741.6 million.

Concurrently, it also announced that it discovered material weaknesses in its financial controls that would prevent it from filing its annual report in time.

Additionally, the company said it would work to refinance $500 million of its 2021 bonds.

“They’ve been kind of a disappointment,” a trader said. “They have to boost sales to catch up. They can’t have many more quarters like this.”

Dallas-based sector peer Neiman Marcus’ issues declined.

The 8% notes due 2021 lost ½ point to close at 54¾ bid. The 7 1/8% notes due 2028 dropped 4 points to close at 70 bid.

A Texas judge dismissed a lawsuit brought against the company by a hedge fund this week, claiming that Marble Ridge Capital did not have standing to bring the case regarding the transfer of MyTheresa.

Navios rises

Meanwhile, in the shipping space, Navios’ paper rose, market sources said.

The 7¼% paper due 2022 added 1¾ points to close at 92 bid.

On Tuesday, the Monaco-based shipper extended its exchange offer for 946,100 of its American Depositary Shares representing its 8.75% series G cumulative redeemable perpetual preferred stock and increased the amount it will pay for the preferreds, Prospect News reported.

The exchange offer will now expire at 11:59 p.m. ET on March 29, making this the fourth extension since the offer began on Feb. 1.

Bristow slips

In energy, Bristow’s notes moved lower, traders said.

The 6¼% notes due 2022 slid 2¾ points to close at 18½ bid.

The Houston-based offshore helicopter name’s structure has been under pressure since obtaining a grace period from two loan parties that extends the deadline of default to April.

“This sector has just been decimated,” a trader said.

Oil positive

A positive day for oil futures led to mostly positive movements in distressed oil tranches, market sources said.

Los Angeles-based independent oil and gas producer California Resources’ issues were gaining.

The 6% notes due 2024 tacked on ¾ point to close at 69¾ bid. The 8% notes due 2022 added 1 point to close at 81 bid.

London-based contract driller Ensco’s paper was also positive.

The 7¾% paper due 2026 traded up ½ point to close at 87¼ bid.

Houston-based producer Alta Mesa’s notes were moving lower.

The 7 7/8% notes due 2024 lost 1¾ points to close at 38 bid.

West Texas Intermediate crude oil futures for April delivery closed 80 cents better at $59.83 per barrel.

North Sea Brent crude oil futures for May delivery ended the session at $68.50 per barrel after rising 89 cents.

Intelsat, Frontier mixed

Elsewhere, in the telecom sector, Intelsat’s issues were mixed, traders said.

Intelsat Jackson Holdings SA’s 5½% notes due 2023 lost ¼ point to close at 89¾ bid. Intelsat (Luxembourg) SA’s 8 1/8% notes due 2023 jumped 1¼ points to close at 74¾ bid.

The Luxembourg-based satellite operator has been pushed further into distressed territory as questions grow over potential regulations on the use of the C-band spectrum.

Norwalk, Conn.-based wireline telecom name Frontier’s paper was also mixed.

The 11% notes due 2025 dropped ¾ point to close at 66 bid. The 10½% notes due 2022, while moving as high as 76 bid during the day, ended level at 75 bid, according to Trace data.

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