Odebrecht remains weak as company fights rumors; Avaya’s upward trend continues; AMD gains

By Stephanie N. Rotondo

Seattle, July 22 – Distressed debt traders once again remarked that the day’s activity was focused on more high-yield issues than on distressed credits.

Notably, Revlon Inc.’s $450 million of 6¼% senior notes due 2024 was “all the volume,” a trader said. The deal came Thursday.

Also trading busily were Olin Corp. bonds. One trader said that the name was down 1 to 2 points on the day following a “big revision in guidance.

“The stock was getting beat up pretty good,” the trader added. “It was down like 20%.”

Despite the focus on “all the go-to regular high yield” names, as one trader put it, there were a few distressed names that were trying to grab investors’ attention.

Odebrecht Finance Ltd. and Avaya Inc., for instance, continued to be of note, following Thursday’s trend.

Odebrecht, for its part, was continuing to soften amid concerns about the company and its association with a corruption scandal in Brazil. The parent company, Odebrecht SA, was also looking to fight back against rumors it was seeking some sort of reorganization.

As for Avaya, that paper continued to climb upward, though there hasn’t been any news to explain either the surge in trading volume or the gains.

Another name that was topical for the day was Advanced Micro Devices. The Sunnyvale, Calif.-based chip maker reported earnings late Thursday, showing a swing to profit and the first sales increase in almost two years.

© 2015 Prospect News.
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