Neiman Marcus notes tumble after earnings release; Sears paper extends recent decline

By James McCandless

San Antonio, Sept. 18 – The distressed debt market increased its focus on struggling retail names in Tuesday trading.

Neiman Marcus Group, Inc.’s notes cratered after the company released a second-quarter earnings report with mixed results.

The 8% notes due 2021 lost about 8¾ points to close at around 65½ bid.

The privately held company released its second-quarter earnings results, reportedly showing improved sales but an ever-present debt problem.

“They had around 800 single trades today,” a trader said. “That’s the most in a single day I’ve seen in a while. People were just piling on. I think with that amount of activity it’ll be tough to reduce the amount of scrutiny on it anytime soon.”

Sears Holdings Corp.’s notes declined, with one tranche adding to losses seen a day earlier.

The 6 5/8% notes due 2018 lost about 3½ points to close at 91½ bid. The 8% notes due 2019 fell 1¼ points to close at 36½ bid.

On Monday, the 6 5/8% notes rose 3 points and the 8% notes lost 1¾ points.

Windstream Holdings, Inc.’s paper traded mixed. Last week, the company outlined its plan to refinance its revolver and a term loan.

In other trading, Intelsat SA’s notes and California Resources Corp.’s paper improved, while Frontier Communications Corp.’s notes were mixed.

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