J.C. Penney pummeled on poor guidance; Intelsat retreat continues; Venezuela, PDVSA bonds rally

By Paul Deckelman

New York, Oct. 27 – In what traders said was a mostly quiet market in the bonds of underperforming and distressed companies on Friday, struggling retailer J.C. Penney Co. Inc. was one of the exceptions to the rule.

Its notes fell sharply after it warned of a wider third-quarter loss than analysts have been predicting.

Also in the retailing sphere, the traders saw some improvement in Rite Aid Corp.’s bonds, which had fallen badly on Thursday on investor fears that internet retailing giant Amazon.com might be eyeing an entry into the prescription drug business.

Elsewhere, traders said that communications satellite company Intelsat SA’s notes were lower throughout its capital structure in fairly active dealings, a day after the company posted lackluster quarterly numbers.

In the emerging markets space, traders said that Venezuela and its state-owned oil company, Petroleos de Venezuela SA, rallied after PDVSA announced it had made an $842 million amortization payment on its 2020 notes.

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