Rite Aid up, CDS spreads firm; Staples mixed; Nabors softens in June; Beazer pressured

By Cristal Cody

Tupelo, Miss., June 24 – Rite Aid Corp.’s unsecured and secured paper climbed in secondary trading Friday, a day after the company reported a wide first-quarter earnings loss.

Rite Aid’s 8% senior secured notes due 2026 (B3/CC/BB-) jumped 2¼ points to 82¼ bid on $5 million of paper traded, a source said.

Rite Aid’s credit default swaps also came in nearly 300 basis points this week.

Staples, Inc.’s senior notes were mixed, while its CDS spreads eased 75 bps over the week.

Staples’ 7½% senior secured notes due 2026 (B3/B) climbed 2¼ points to around the 88 bid area Friday on light volume of $1 million, a source said.

Energy bonds were mixed as crude oil prices climbed after ending Thursday lower.

Nabors Industries, Inc.’s bonds improved during the session, though its CDS spreads eased more than 75 bps this week.

In other names under pressure, Beazer Homes USA, Inc.’s bonds and CDS spreads have weakened over the back half of June, sources said.

The company’s 7¼% senior notes due 2029 (B3/B) were trading about 1¼ points lower on the week and down more than 10 points since May on an 82 handle.

Beazer Home’s CDS spreads also have widened over 200 bps in the last two weeks.

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