Intelsat bonds bounce on preliminary tender results; energy mixed; Claire’s seen rising

By Stephanie N. Rotondo

Seattle, June 1 – It was a mixed bag for distressed debt during the first trading day of June.

For Intelsat SA, the day was a positive one. The company’s bonds – particularly those linked to its Intelsat Jackson Holdings SA unit – popped about 2 points after the company released preliminary results of its tender offer for Intelsat Jackson paper.

In addition to reporting that the offer was thus far oversubscribed, the company also extended the early deadline.

It was, however, an up-and-down day for the energy space, despite a modest gain in crude oil prices. Profit-taking might have been the culprit on the downside, though hopes of a production freeze from OPEC’s meeting on Thursday were playing a role on the upside.

Still, market chatter is that no such deal will occur.

A trader said Chesapeake Energy Corp.’s 3.878% notes due 2019 were steady at 74¼. However, he saw Denbury Resources Inc.’s 6 3/8% notes due 2021 coming in over a point to close at 70.

In Comstock Resources Inc. paper, the 9½% notes due 2020 were deemed over a point better at 28¼.

The retail arena was also mixed for the day. Claire’s Stores Inc. paper was trending higher following a report out late Tuesday from Bloomberg indicating that the store’s private equity owner has been buying up debt.

But rue21 Inc. bonds were not faring as well. A trader said the debt was drifting lower, likely in response to the company’s recent earnings release.

© 2015 Prospect News.
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