Tupperware improves, Golden Nugget sinks post-earnings; PBF Holdings spirals lower

By Abigail W. Adams

Portland, Me., Oct. 28 – It was a buyer’s market in the distressed debt market on Wednesday with the sell-off in high yields accelerating amid renewed lockdown measures in Europe and spiking Covid-19 cases in the United States, a source said.

While the overall market was succumbing to selling pressure, earnings related news was the driving force of trading activity in distressed debt credits.

While many reports were coming in better than expected, investors had mixed reactions with some names seeing gains and others selling off.

Tupperware Brands Corp.’s 4.75% senior notes due 2021 were active with the notes improving after the company reported a large earnings beat.

The company has seen a remarkable turnaround with the market expecting a bankruptcy filing just a few months ago, a source said.

Golden Nugget Inc.’s 8¾% senior notes due 2025 were trading down following the third-quarter earnings results from affiliate Golden Nugget Online Gaming Inc.

While the company reported record revenue, the notes were trading off with the company’s SPAC postponed.

The sell-off in PBF Holding Co. LLC’s notes accelerated on Wednesday on the eve of the company’s earnings report.

Tupperware active

Tupperware Brands’ 4¾% senior notes due 2021 were active on Wednesday following the company’s third-quarter earnings.

The notes rose 1 point to a 97-handle on Wednesday. They were previously marked at 95¾ bid, 96 offered, a source said.

The notes were trading in the 20s as recently as May.

“Bankruptcy seemed like a foregone conclusion,” a source said.

However, the home and beauty products company saw a remarkable turnaround.

Tupperware stock was among the few gainers during Wednesday’s session which saw the Dow Jones industrial average collapse more than 900 points.

The company reported a large earnings beat with adjusted EBITDA of $206.6 million.

Tupperware also reduced the total outstanding amount of the 4¾% senior notes to $380 million in the third quarter through open market purchases and realized $120 million of its targeted $180 million cost savings target, the company said in a press release.

Golden Nugget drops

Golden Nugget’s 8¾% senior notes due 2025 dropped in active trading despite a large earnings beat.

The notes were down more than 4½ points to close the day at 80½, a source said.

The notes were selling off despite subsidiary Golden Nugget Online Gaming reporting record third-quarter revenue.

The company reported revenue of $28.9 million, a year-over-year increase of 93%, according to a company news release.

However, the company also announced the closing of the SPAC, or special purpose acquisition vehicle, that would make Golden Nugget Online Gaming a publicly traded company was pushed back to November.

The deal was initially supposed to close in the third quarter.

Following the SPAC, Golden Nugget Online Gaming will be only the second publicly traded online casino in the United States.

PBF Energy slides

PBF Energy’s senior notes continued their downward spiral on the eve of the company’s earnings report.

The petroleum refinery’s 7¼% senior notes due 2025 dropped 8½ points to 41½ on Wednesday.

The 6% senior notes due 2028 were down 3¼ points to 38.

The 9¼% senior notes due 2025 sank 3 points to 87.

PBF Energy’s notes have been in a tailspin since last week with the market expecting a disastrous earnings report, sources said.

However, the 9¼% notes have held up relatively well with the notes secured.

“The bottom of the capital structure is going to look a lot worse,” a source said.

The trading activity of the notes implies the company is in trouble and the market is expecting PBF Energy to report negative EBITDA.

However, “they have plenty of cash,” a source said. “They’re not going to file anytime soon.”

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