California Resources improves ahead of earnings; Intelsat up as subsidiary sells notes

By James McCandless

San Antonio, Aug. 2 – Volume in the distressed debt market continued to focus on companies releasing earnings reports in Thursday’s session.

California Resources Corp.’s notes rose ahead of the release of a better than expected earnings report after the market close.

Intelsat SA’s issues moved up as a subsidiary of the company brought a $1.25 billion offering of senior notes to market.

Bristow Group Inc. paper traded up ahead of earnings which missed analyst estimates.

Frontier Communications Corp.’s notes were mixed. The company released its Q2 earnings report on Thursday.

Paper from Diebold Nixdorf, Inc. dropped again in the wake of a worse than expected Q2 earnings report.

American Tire Distributors’ bonds rose as the company worked to garner new business through its reorganization strategy.

California Resources up

Notes from Los Angeles-based independent oil and gas producer California Resources improved, traders said, as the company posted its Q2 earnings report after the market close Thursday. The company reported a 29 cents per share loss, beating analyst expectations of a 43 cents per share loss.”

“This shows that they’re on the right track,” a trader said.

In trading, the company’s 8% notes due 2022 rose ½ point to close at 90 bid.

Intelsat gains

The debt of Luxembourg-based satellite communications company Intelsat gained for a second day, market sources said, as subsidiary Intelsat Connect Finance SA brought a $1.25 billion offering of senior notes due 2023 to market.

On Tuesday, the company released its second quarter earnings report, posting a 38 cents per share loss versus analyst estimates of a 37 cents per share loss. It also reported revenues of $537.71 million.

Intelsat (Luxembourg) SA’s 7¾% notes due 2021 picked up ¼ point to close at 96½ bid. Its 8 1/8% notes due 2023 rose about 1 point to close at around 88½ bid.

On Wednesday, the 7¾% notes rose ¾ point and the 8 1/8% notes gained 2 points.

Bristow up

Houston-based offshore transportation name Bristow Group saw its paper rise, traders reported, ahead of the release of second quarter earnings after Thursday’s market close. The company disclosed an 82 cents per share loss against analyst estimates of a 72 cents per share loss. However it bested revenue estimates with $367.89 million.

The 6 ¼% paper due 2022 added about ¼ point to close at around 76 ¾ bid.

Volume names trade

Norwalk, Conn.-based wireline communications name Frontier Communications’ notes were mixed. The company posted its Q2 earnings report on Tuesday, falling short of analyst estimates of a 72 cents per share loss with an 80 cents per share loss. It also reported a net loss of $18 million.

The 7 5/8% notes due 2024 were level at around 68½ bid. The 10½% notes due 2022 were level at 90¼ bid. The 11% notes due 2025 rose about 2 points to close at 82¼ bid.

On Wednesday, the 7 5/8% notes gained about ¾ point, the 10½% notes were level and the 11% notes fell about ¾ point.

North Canton, Ohio-based connected commerce solutions company Diebold saw its issues lose again.

The company released its Q2 earnings report Wednesday, reporting a 21 cents per share loss against analyst expectations of a 1 cent loss per share. The company is in talks with lenders about amending its credit agreement.

The 8½% notes due 2024 lost about ¾ point to close at 79½ bid.

On Wednesday, the 8½% notes dropped about 13¾ points.

Huntersville, N.C.-based tire distributor American Tire’s paper improved. The company is in talks with bondholders as it tries to generate new business after losing distribution deals with Bridgestone and Goodyear.

“Those bonds will hang around in the 40’s until we get some clarity about their next steps,” a trader said.

The 10¼% paper due 2022 picked up 1 point to close at 41 bid.

On Wednesday, the 10¼% paper lost 1 point.

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