Ardagh distressed bonds jump on financial results; Staples higher after outlook change

By Cristal Cody

Tupelo, Miss., Feb. 22 – Distressed issues were moving on Thursday on topical news, including Ardagh Group SA’s bonds that rallied as much as 8 points in busy trading after the company announced heavy fourth-quarter losses.

Ardagh’s bonds led trading of distressed bonds and were yielding over 13%, a source said.

Ardagh Finance SA’s 6½% senior secured notes due 2027 (Caa3/B-) rallied 8 points to 47 bid on more than $15 million of notes changing hands. The yield was 34.31%.

Ardagh Packaging Finance plc’s 5¼% senior notes due 2027 (Caa1/CCC+) jumped 4¾ points to 5 7/8 points to trade at the 73¼ bid to 73 7/8 bid range on over $24 million of volume. The notes were yielding over 15%.

Staples Inc.’s 10¾% senior notes due 2027 (Caa2/CCC) climbed 5/8 point to 78 5/8 bid following an outlook change to negative for the office supplies retailer, a source said.

Credit default swap spreads in the name also tightened a second week in a row.

Stocks rallied while the benchmark 10-year Treasury note yield was mostly unchanged at 4.32% following surprise stronger U.S. economic data a day after the Federal Reserve released minutes from its January meeting.

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