Men’s Wearhouse plagued; iHeart debt wanes; Hexion firms post-numbers; Mallinckrodt drops

By Stephanie N. Rotondo

Seattle, Nov. 9 – It was a “slow Monday” in the distressed debt market, a trader reported, but that did not stop investors from continuing to pressure recently topical names.

The Men’s Wearhouse Inc.’s debt remained under pressure Monday. Late last week, the company released preliminary quarterly results for its Jos. A. Bank brand, which were disappointing enough to push the company’s debt down by as much as 15 points on Friday.

Come Monday, the bonds drifted down a few more points, according to traders.

iHeartMedia Inc.’s paper was also softer again. Those bonds have been dropping ever since the San Antonio-based multimedia company reported earnings on Thursday.

However, not all earnings seemed to displease investors.

Hexion Inc. reported its results on Monday, showing a profit for the first time in three years. In response, the company’s debt improved as much as 3 to 4 points.

Away from earnings, Mallinckrodt plc bonds took a beating as Citron Research – the short-seller that was behind Valeant Pharmaceuticals International Inc.’s recent rout – said the drugmaker had “significantly more downside” than Valeant.

The Men’s Wearhouse bonds were “down again,” a trader said Monday.

He saw the 7% notes due 2022 closing around 84.

Another trader said the issue was “very active,” falling nearly 3 points to 85¾.

The company reported preliminary results for its Jos. A. Bank brand late Thursday. In that update, the company also lowered it earnings per share forecast for the year.

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