Bed Bath & Beyond mixed on layoff news; LSC notes tank after merger cancelled

By James McCandless

San Antonio, July 23 – While retail and oil names made news on Tuesday, pharmaceutical names made up much of the trading in the distressed debt space.

Bed Bath & Beyond Inc.’s notes were mixed after the company announced that it would make cuts to its corporate staff.

Sector peer J.C. Penney Co., Inc.’s issues were seen improving.

Meanwhile, LSC Communications, Inc.’s paper tanked after news broke that a potential merger with Quad/Graphics, Inc. would not happen.

In the pharma space, Mallinckrodt plc’s notes continued to drop under the pressure of negative headlines while Teva Pharmaceutical Industries Ltd.’s issues saw a reprieve.

In retail, Bed Bath & Beyond’s notes saw a mixed day, traders said.

The 5.165% senior notes due 2044 picked up 1 point to close at 67½ bid. The 4.915% notes due 2034 lost 1 point to close at 72¼ bid.

On Tuesday, the Union, N.J.-based retail chain announced that it would be cutting 7% of its corporate staff.

Meanwhile, LSC Communications’ paper tanked, market sources said.

The 8¾% senior secured paper due 2023 crashed 11½ points to close at 83¾ bid.

News broke on Tuesday that a merger between Chicago-based business printing services name and peer Quad/Graphics had been terminated.

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