Sears notes active after earnings release; Intelsat closes mixed amid tender offer

By James McCandless

San Antonio, Sept. 14 – The week in distressed debt trading came to a close with investor attention still fixed on names with news surrounding them.

Sears Holdings Corp.’s notes were active but level on Friday after the company released its second-quarter report late Thursday.

Intelsat SA’s notes closed mixed once again as a subsidiary continues a cash tender offer that commenced on Monday.

Community Choice Financial Inc.’s paper maintained a negative streak. Last Friday, the company received new financing worth $45 million.

Frontier Communications Corp.’s notes gained. A recent disappointing second-quarter report led to a ratings downgrade.

Sears’ notes ended Friday largely unchanged, traders said, despite increased trading activity.

The 6 5/8% notes due 2018 were level at around 92 bid.

On Thursday, the 6 5/8% notes rose about ¾ point and the 8% notes due 2019 lost 3 points.

After the close on Thursday, the company released its second-quarter earnings report, which the market had anticipated to show widening losses.

The company reported a loss of $4.68 per share, increasing from a loss of $2.33 per share in the second quarter of 2017.

“I can’t see any way up for them,” a trader said. “Their sales just keep dropping. There’s nothing great in that report. I think bankruptcy is a real possibility in the next few quarters.”

© 2015 Prospect News.
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