Intelsat notes mixed before tender offer concludes; Neiman Marcus paper trades mixed

By James McCandless

San Antonio, Sept. 19 – Trading in the distressed debt market dug its heels into retail names.

Intelsat SA’s notes finished mixed before a subsidiary announced the results of a cash tender offer after the market close.

Neiman Marcus Group, Inc.’s issues were also mixed a day after releasing its second-quarter earnings report.

Sears Holdings Corp.’s paper declined.

Frontier Communications Corp., another distressed telecom name, saw its notes trade mixed, while Community Health Systems, Inc.’s notes fell on rising investor attention.

Mallinckrodt plc’s paper declined in the medical space.

Intelsat mixed

Intelsat’s notes ended mixed on Wednesday, traders said.

The Intelsat Jackson SA 5½% notes due 2023 rose ½ point to close at 91½ bid. The Intelsat (Luxembourg) SA 8 1/8% notes due 2023 shed ¼ point to close at 86 bid.

On Tuesday, the 5½% notes rose ¼ point and the 8 1/8% notes rose 1¼ points.

After the close on Wednesday, subsidiary Intelsat Jackson announced the results of a recent cash tender offer for its 7¼% senior notes due 2020.

In all, $1,723,269,000 of the aggregate principal amount was validly tendered at the time the offer expired (see related story elsewhere in this issue).

The offer commenced last Monday.

Intelsat is a Luxembourg-based satellite communications company.

Neiman Marcus mixed

Neiman Marcus’ issues also traded mixed, market sources said.

The 8% notes due 2021 rose about ¼ point to close at 65¾ bid. The 7 1/8% notes due 2028 lost 4½ points to close at 81¾ bid.

On Tuesday, the 8% notes lost 8¾ points.

The company released its second-quarter earnings report on Tuesday with improved sales numbers but doing little to quell worries about its debt.

“A lot of people jumped on it yesterday and they probably won’t let go for a while,” a trader said.

Neiman Marcus is a Dallas-based luxury department store chain.

Sears down

Sears’ paper declined, traders said.

The 6 5/8% notes due 2018 lost 1 point to close at 90½ bid.

On Tuesday, the 6 5/8% notes gave up 3½ points and the 8% notes due 2019 fell 1¼ points.

Sears is a Hoffman Estates, Ill.-based department store chain.

Volume names trade

Frontier Communications saw its notes trade mixed.

The 7 5/8% notes due 2024 added ¾ point to close at 66 bid. The 10½% notes due 2022 were level at 90¼ bid. The 11% notes due 2025 picked up ¼ point to close at 80½ bid.

In other trading, Franklin, Tenn.-based hospital operator Community Health Systems’ notes declined.

The 7 1/8% notes due 2020 lost 1½ points to close at 86½ bid. The 6 7/8% notes due 2022 shaved off ½ point to close at around 59 bid.

“There isn’t any recent news driving it, but it’s become very active over the past week,” a trader said.

Staines-upon-Thames, U.K.-based drug maker Mallinckrodt also declined in the medical space.

The 4¾% paper due 2023 lost ¼ point to close at 86¼ bid.

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