PHI declines after releasing earnings late Thursday; Sanchez Energy issues continue negative trend

By James McCandless

San Antonio, Aug. 10 – Friday trading in the distressed debt market focused on names with recent earnings statements.

PHI, Inc. notes declined after the late Thursday release of its Q2 earnings statement, reporting a loss per share.

Sanchez Energy Corp. issues declined again. A recent Q2 earnings report fell short of analyst expectations.

Diebold Nixdorf, Inc. paper saw more declines in the aftermath of a disappointing earnings report.

Intelsat SA notes were mixed. A subsidiary priced a $1.25 billion offering of senior notes last Thursday.

Frontier Communications Corp. issues declined. Last week, the company released a disappointing earnings report.

Rite Aid Corp. paper improved. On Thursday, a potential merger with grocery chain Albertsons was canceled.

PHI falls

Lafayette, La.-based oil and gas transportation name PHI saw a multi-point drop in its notes, traders said, after the company released its Q2 earnings statement after market Thursday. It reported a 45 cents per share loss and $169.2 million in revenues.

“They’re indicative of what a precarious sector energy can be,” a trader said. “It can really turn on a dime.”

The 5¼% notes due 2019 lost about 6 points to close at around 89 bid.

Sanchez down

Houston-based independent oil and gas producer Sanchez Energy issues declined again, market sources said. The company reported a 26 cents per share loss in its Q2 earnings statement recently, missing the expected 6 cents per share profit. Its oil production numbers also failed to meet its own estimates.

“Sanchez has been trading like wildfire lately,” a trader said.

The 6 1/8% notes due 2023 fell 2 points to close at 54 bid.

On Thursday, the 6 1/8% notes dropped 4¼ points.

Diebold goes lower

North Canton, Ohio-based connected commerce solutions company Diebold paper extended its free fall to a fifth day, traders said. On Tuesday, Moody’s Investors Service lowered its corporate family rating and probability of default rating.

Last Thursday, the company reported a 29 cents per share loss in its Q2 earnings report, falling short of analyst expectations of a 1 cent per share profit.

“I’m not sure where the floor is on this,” a trader said. “Another bad story and it could just keep falling.”

The 8½% paper due 2024 shaved off about 1½ points to close at around 56 bid.

On Thursday, the 8½% paper lost 7¼ points.

Volume names trade

Luxembourg-based satellite communications company Intelsat’s notes were mixed. Last Thursday, subsidiary Intelsat Connect Finance SA brought a $1.25 billion offering of senior notes due 2023 to market. Last Tuesday, the company released its Q2 earnings statement, reporting a 38 cents per share loss, surpassing analyst estimates of a 37 cents per share loss. It also reported $537.71 million in revenues.

The Intelsat (Luxembourg) SA 7¾% notes due 2021 lost about ¼ point to close at around 96¾ bid. The 8 1/8% notes due 2023 added about 2 points to close at around 91 bid.

Norwalk, Conn.-based wireline communications name Frontier Communications issues declined.

Last Friday, Standard & Poor’s lowered its issuer credit rating, senior unsecured debt rating and affirmed a negative outlook.

On Tuesday, the company released its Q2 earnings report, missing analyst estimates of a 72 cents per share loss with an 80 cents per share loss. It also reported an $18 million net loss.

The 7 5/8% notes due 2024 lost about ¼ point to close at around 67¼ bid. The 10½% notes due 2022 fell about ¼ point to close at 91 bid. The 11% notes due 2025 traded down about 1 point to close at 80½ bid.

On Thursday, the 7 5/8% notes gained about 1¼ points, the 10½% notes rose about ¾ point and the 11% notes lost about ¼ point.

Camp Hill, Pa.-based retail drugstore chain Rite Aid paper trended upward. On Thursday, reports confirmed that the company had terminated a potential merger with grocery store chain Albertsons Co. LLC prior to shareholders voting on the matter.

The 7.7% paper due 2027 rose ½ point to close at 80 bid.

On Thursday, the 7.7% paper dropped about 6½ points.

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