Rite Aid notes higher after earnings beat; Antero Resources eyed as new notes offered

By James McCandless

San Antonio, Dec. 17 – The distressed debt market opened the back half of the week with retail and energy names in focus.

Rite Aid Corp.’s notes pushed higher after the company beat its earnings expectations for the third quarter.

The 7.7% senior debentures due 2027 shifted up 3 points to close at 98 bid. The 8% notes due 2026 grabbed 2 points to close at 107½ bid.

Before the market opened on Thursday, the Camp Hill, Pa.-based drug store chain released its earnings results for the third quarter.

The company reported an earnings per share profit of 40 cents, outpacing analyst expectations of a 1 cent per share loss.

Revenues were posted as $6.12 billion, also higher than predictions and representing a 12% increase from the previous year.

In the energy space, Antero Resources Corp.’s paper diverged as the company offered and sold a $500 million tranche of senior notes.

The existing 5 1/8% senior notes due 2022 grabbed 1¾ points to close at 96¾ bid. The 5% senior notes due 2025 shaved off ½ point to close at 91¼ bid.

The Denver-based independent oil and gas producer sold $500 million of senior notes due 2026 at par to yield 8 3/8% on Thursday.

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