Diebold soars on reports of hiring advisers for potential sale; PHI issues decline as company extends tender

By James McCandless

San Antonio, Aug. 13 – The distressed debt market saw volume center around newsworthy names to start the week in trading.

Diebold Nixdorf, Inc. notes shot up on reports that the company is in the early stages of finding a buyer after a poor Q2 earnings report.

PHI, Inc. issues declined as the company extended tender offers for its senior notes due 2019. Last week, the company reported an earnings loss.

Sanchez Energy Corp. paper declined again. The company missed analyst predictions in a recent Q2 earnings report.

Intelsat SA notes were mixed again. Recently, a subsidiary priced a $1.25 billion offering of senior notes.

Frontier Communications Corp. issues were also mixed. Recently, the company released a disconcerting earnings report.

Rite Aid Corp. paper fell. A potential merger with grocery chain Albertsons was canceled last Thursday.

Diebold improves

North Canton, Ohio-based connected commerce solutions company Diebold notes shot back up from its precipitous lows, traders said, after reports confirmed that the company is beginning to explore a possible sale. The company has hired Evercore and Credit Suisse as financial advisers tasked with looking for potential buyers.

Recently, the company reported a 29 cents per share loss in its Q2 earnings report, falling short of analyst expectations of a 1 cent per share profit. The report prompted Moody’s Investors Service to lower its corporate family rating and probability of default rating.

“You don’t see a bond move like that too often, especially in this direction,” a trader said. “In the long run, this course might work out better for them than trying to steer the ship themselves.”

The 8½% notes due 2024 gained about 17½ points to close at 72 bid.

On Friday, the 8½% notes lost about 1½ points.

PHI loses

Lafayette, La.-based oil and gas transportation name PHI issues fell, market sources said, as the company extends tender offers for its $500 million outstanding 5¼% senior notes due 2019 by two weeks.

The tender offer has now been extended until 5 p.m. ET on Aug. 24, according to a company update on Monday. (See related story elsewhere in this issue.)

Last Thursday, the company reported a 45 cents per share loss and $169.2 million in revenues.

The 5¼% paper due 2019 fell about ½ point to close at 90 bid.

On Friday, the 5¼% paper lost about 6 points.

Sanchez Energy down

Houston-based independent oil and gas producer Sanchez Energy paper declined, traders said. Recently, the company reported a 26 cents per share loss in its Q2 earnings statement, falling short of the expected 6 cents per share profit. Its oil production numbers failed to meet its own estimates.

The 6 1/8% paper due 2023 shaved off ¾ point to close at 53¼ bid.

On Friday, the 6 1/8% paper fell 2 points.

Volume names trade

Luxembourg-based satellite communications company Intelsat notes were mixed to start the week. Recently, subsidiary Intelsat Connect Finance SA brought a $1.25 billion offering of senior notes due 2023 to market.

The company released its Q2 earnings statement recently, reporting a 38 cents per share loss, beating analyst estimates of a 37 cents per share loss. It also reported $537.71 million in revenues.

The Intelsat (Luxembourg) SA 7¾% notes due 2021 rose about ½ point to close at around 97¼ bid. The 8 1/8% notes due 2023 lost about 2½ points to close at around 88½ bid.

On Friday, the 7¾% notes lost about ¼ point and the 8 1/8% notes added about 2 points.

Norwalk, Conn.-based wireline communications name Frontier Communications issues were also mixed. Last Friday, Standard & Poor’s lowered its issuer credit rating, senior unsecured debt rating and affirmed a negative outlook.

The 7 5/8% notes due 2024 gained about 1¼ points to close at around 68½ bid. The 10½% notes due 2022 fell about ½ point to close at around 90½ bid. The 11% notes due 2025 lost ½ point to close at 80 bid.

On Friday, the 7 5/8% notes lost about ¼ point, the 10½% notes fell about ¼ point and the 11% notes lost about 1 point.

Camp Hill, Pa.-based retail drugstore chain Rite Aid paper fell. Last Thursday, reports confirmed that the company had ended the possibility of a potential merger with grocery store chain Albertsons Co. LLC before letting shareholders vote.

The 7.7% paper due 2027 dropped 2 points to close at 78 bid.

On Friday, the 7.7% paper rose ½ point.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.