Noble Group continues to leak; Intelsat extends offer, off a little; GenOn Energy mixed

By Colin Hanner

Chicago, May 16 – Issues continued to stay firm as a whole in the distressed debt market on Tuesday, and volatility remained as present as it has in the past few sessions, market sources said.

“Everything’s been up today, and this week,” a trader said.

Noble Group Ltd., a physical commodity trader based in Hong Kong, has seen a 40-point downswing since Thursday after its first quarter results. Its bonds ticked lower several points again on Tuesday.

An exchange offer already twice extended for satellite telecommunications company Intelsat SA was again lengthened on Tuesday following low turnout. Its bonds were off “a little bit,” a trader said.

Though rue21 Inc. announced its Chapter 11 bankruptcy on Tuesday – sending the retail default rate even higher for the year – retail companies didn’t seem to notice, though Claire’s Stores Inc. and Neiman Marcus Group Inc. did trade.

Exploration and production names took a backseat on the session as crude oil futures slipped after rallying the past few sessions. In energy, GenOn Energy Inc. were down, flat and higher across three issues.

Valeant Pharmaceuticals International, Inc. was mixed, though active, on the session, as were some other health and pharmaceutical names.

Frontier Communications Corp. was higher on “lots of trades,” feeding into a rally after the downturn the telecommunications company had since it announced its earnings on May 2, and Hertz Global Holdings Inc. rebounded after sessions of falling caused by disappointing quarterly figures last week.

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