Petsmart paper drops on CEO exit; Navios down; Valeant, California Resources remain active

By Stephanie N. Rotondo

Seattle, Aug. 10 – The distressed debt arena was “kind of weakening up a little bit” on Thursday, a trader said, adding that the space was following the broader markets.

The equity markets dropped 1% to 2% during the session, as investors remained concerns about growing tensions between the United States and North Korea. Domestic crude oil prices meantime declined over 2% as OPEC production was increased and Russia was said to be mulling increasing its own output.

With the general air of negativity persisting, woe betide the company that had news that could be taken poorly.

Petsmart Inc. was one such name, as the company announced that Michael J. Massey was stepping down from his role as chief executive officer.

Navios Maritime Acquisition Corp. was another such name. The Monaco-based owner and operator of tanker vessels reported earnings on Thursday, swinging to a loss from the previous year’s profit.

Meanwhile, recently notable names like Valeant Pharmaceuticals International Inc. and California Resources Corp. remained in focus.

A trader said Valeant’s 6 1/8% notes due 2025 continued to be active, but fell for the second straight session.

He called the issue off a quarter-point at 83.

California Resources’ 8% second-lien notes due 2022, however, had their “first non-down day in awhile,” a trader said, deeming the debt unchanged at 56˝.

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