Ultra Petroleum notes trade back down after Q1 report; Revlon bounces back after disappointing earnings

By James McCandless

San Antonio, May 11 – The distressed debt market experienced higher than usual trading on Friday, market sources confirmed, as the week came to a close.

Ultra Petroleum Corp. notes traded down after having risen Thursday as the market reacted to positive Q1 numbers, reporting a profit.

Revlon, Inc. issues bounced back after declining the past few days after the company reported a fall in Q1 revenue and earnings.

DISH Network Corp. paper rose, gaining back some of its losses after Tuesday’s Q1 report, which outlined less than stellar earnings and a falling subscriber count.

Intelsat SA notes closed the week up. Last week, the company posted a weak Q1 report. Frontier Communications Corp., another telecom name, issues were mixed on the heels of last week’s poor Q1 report. Mallinckrodt plc paper gained.

Ultra Resources down

Houston-based independent oil and gas producer Ultra Petroleum notes traded back down, traders confirmed, after gaining Thursday as the company posted its Q1 report. A profit of 24 cents per share and a net income of $47.5 million were reported, reversing a loss from last quarter.

“There is a question of their ability to keep these types of numbers going in the long term,” a trader said. “If oil prices dip again that could be trouble.”

The 7 1/8% notes due 2025 lost 11 points to close at 60¼ bid. The 6 7/8% notes due 2022 fell about 2¼ points to close at around 64¼ bid.

On Thursday, the 7 1/8% notes gained 4 points.

Revlon rises

New York City-based cosmetics producer Revlon’s issues bounced back from declines Thursday, traders reported, as the market continued to react to its Q1 report posted this week. The company reported a loss of $1.43 per share and a 6% decrease in its net sales at $229.1 million.

The 5¾% notes due 2021 gained about 1¾ points to close at around 72¾ bid. The 6¼% notes due 2024 edged up about ¼ point to close at around 57¾ bid.

The 5¾% notes shed about 2¾ points and the 6¼% notes lost about 2¼ points on Thursday.

DISH rises

Englewood, Colo.-based pay-TV provider DISH Network paper rose to end the week, market sources confirmed, gaining back some of the losses experienced after the company posted its Q1 report on Tuesday.

It disappointed analysts by reporting Q1 earnings of 70 cents per share, missing analyst estimates of 72 cents. It also reported a subscriber count of 13.148 million, off from 13.528 million in the previous quarter.

The 5 7/8% paper due 2024 gained about ½ point to close at around 84 bid. The 7¾% paper due 2026 jumped up about 2¼ points to close at around 90 bid.

The 5 7/8% paper fell about ¼ point and the 7¾% paper remained level on Thursday.

Volume names trade

Luxembourg-based satellite communications company Intelsat’s notes ended the week gaining. Last week, the company reported a 56 cents per share loss in its Q1 report, falling short of analyst predictions of 41 cents per share.

The Intelsat (Luxembourg) SA 7¾% notes due 2021 traded up about 3 points to close at around 76½ bid. The 8 1/8% notes due 2023 rose about 2½ points to close at around 69¾ bid.

Norwalk, Conn.-based wireline telecom name Frontier Communications issues were mixed to close out the week. Last week, the company exceeded analyst estimates by reporting a Q1 loss of 58 cents per share and $2.2 billion in revenue.

The 7 5/8% notes due 2024 fell about ½ point to close at around 72 bid. The 10½% notes due 2022 gained about ¼ point to close at around 92¼ bid. The 11% notes due 2025 rose about ½ point to close at around 82 bid.

Britain-based drug maker Mallinckrodt saw its 4¾% paper due 2023 gained about 2¼ points to close at 77½ bid.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.