Altice lower as company considers asset sale; Hexion issues mixed amid creditor maneuvers

By James McCandless

San Antonio, Feb. 5 – In the Tuesday session, the distressed space moved in mixed directions again.

Altice SA’s notes were lower as the company considers selling off its Portugal cable network segment.

Sector peer Intelsat SA’s issues were mixed.

Elsewhere, Hexion Inc.’s paper was also mixed as second-lien holders try to assert themselves in talks with the company.

Dairy name Chobani Global Holdings LLC’s notes were higher after a private earnings release.

Meanwhile, Weatherford International plc’s paper was moving up as the notes remain high in the market’s eye post-earnings.

More leaks in oil futures served as the background for mixed results for Ensco plc and Ultra Petroleum Corp.’s notes and a rise for California Resources Corp.’s issues.

Retailer Neiman Marcus Group, Inc.’s paper went negative.

Altice lower

Altice’s notes were headed lower, traders said.

The 7 5/8% notes due 2025 shed ¼ point to close at 85 bid.

On Thursday, news broke that the Amsterdam-based telecommunications name was moving to sell its Portuguese cable network business.

The notes have been under pressure as the company wrangles with its more than $2 billion in debt, though they saw a bounce when the company reported a growth of subscribers in its French arm in its most recent earnings statement.

Luxembourg-based satellite operator Intelsat’s issues were mixed.

Intelsat Jackson Holdings SA’s 5½% notes due 2023 gained ¼ point to close at 91¼ bid. Intelsat (Luxembourg) SA’s 8 1/8% notes due 2023 lost ¼ point to close at 84¼ bid.

Hexion mixed

Elsewhere, Hexion’s paper was also mixed, market sources said.

The 6 5/8% paper due 2020 rose 2 points to close at 83½ bid. The 9% paper due 2020 lost 2 points to close at 40 bid.

The Columbus, Ohio-based chemicals producer has seen more attention in recent days as second-lien holders continue to press the company on drumming up more collateral in anticipation of scheduled maturities in 2020.

“Today the word is that second-lien guys are starting to buy out the first-lien holders,” a trader said. “They’re also pushing asset sales, but there’s not really a buyer out there.”

On Feb. 15, an interest payment on its 2023 senior unsecured notes is due.

Chobani up

In the food space, Chobani’s notes were higher, traders said.

The 7½% notes due 2025 gained 1¾ points to close at 88¼ bid.

On Tuesday, the New Berlin, N.Y.-based dairy processing company released a private earnings report, with market sources saying the results were largely positive.

“From what we’ve seen and heard, the numbers were pretty good,” a trader said.

Weatherford gains

Meanwhile, in the oil and gas space, Weatherford’s issues were gaining, market sources said.

The 8¼% notes due 2023 picked up 2 points to close at 70 bid. The 9 7/8% notes due 2024 added 1¼ points to close at 70½ bid.

The Baar, Switzerland-based oilfield services name continues to trend higher after its fourth-quarter earnings results showed that it had established a positive free cash flow of $105 million.

The movement comes despite a lower-than-expected 14 cents per share loss.

It also announced the end of an exchange offer for $600 million outstanding of its 9.875% senior notes due 2025 for similarly termed notes.

Energy names mixed

Another negative day for oil futures begot mixed results for distressed energy names, traders said.

London-based contract driller Ensco’s paper were mixed.

The 7¾% paper due 2026 gained ¾ point to close at 81½ bid. The 7.2% paper due 2027 lost 1¾ points to close at 78¼ bid.

Houston-based independent oil and gas producer Ultra Petroleum’s notes were also mixed.

The 6 7/8% notes due 2022 shaved off ¼ point to close at 38¼ bid. The 7 1/8% notes due 2025 picked up 1 point to close at 27 bid.

Los Angeles-based sector peer California Resources’ issues were rising.

The 8% notes due 2022 added 1 point to close at 81¼ bid.

Neiman Marcus off

The retail sector saw Neiman Marcus’ paper falling, market sources said.

The 8% paper due 2021 shed ¼ point to close at 45¼ bid.

In the backdrop of two recent retail bankruptcies, the Dallas-based luxury chain is continuing to grapple with its creditors over restructuring and a private equity transfer of e-commerce segment MyTheresa.

“The sector continues to be pretty fraught with names falling left and right,” a trader said.

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