Acosta bonds drop on word that CEO was booted; Remington 7 7/8% notes active

By Paul A. Harris

Portland, Ore., Jan. 8 – Bonds of Acosta, Inc. traded lower on buzz in the market that sponsor Carlyle Group has booted the company’s chief executive officer, a trader said.

Meanwhile bonds of Remington Outdoor Co., Inc. traded on Monday, a source said.

The action in the distressed market came against the backdrop of gains in high-yield bonds of 1/8 point to ¼ point on Monday, a trader said.

In response to the rumors, Acosta’s 7¾% senior notes due October 2022 were wrapped around 68 late Monday, the trader said.

Last week the bonds traded around 74, the source added.

A million of bonds of Remington Outdoor Co., Inc. traded on Monday, a source said.

The FGI Operating Co. LLC/FGI Finance, Inc. (Freedom Group Inc.) 7 7/8% senior secured notes due May 2020 traded at 24¼, the source added.

A hedge fund manager had the 7 7/8% notes at 23 bid, 25 offered.

In the strapped retail sector, Bon-Ton Stores, Inc. paper, the Bon-Ton Department Stores, Inc. 8% second-lien senior secured notes due June 2021, traded in the mid-20s on Monday, according to a trader who added that the paper is pretty tightly held.

The York, Pa.-based home furnishings retailer reported on Monday that its comparable store sales for the nine-week holiday period ended December 30, 2017 decreased 2.9%.

Bill Tracy, Bon-Ton Stores president and chief executive officer, stated in a press release: “The company’s holiday period comparable store sales decrease of 2.9% is an improvement from the comparable store sales decrease of 6.6% reported in the third quarter.

“We are actively engaged in discussions with our debt holders in an effort to strengthen our capital structure to support the business going forward,” Tracy added.

In the energy sector, the bellwether bonds of California Resources Corp., the 8% senior secured second lien notes due Dec. 15, 2022, ended a touch lower at 85 ¾ bid, 86 offered on Monday, a trader said.

Energy names in the par universe were also off a smidge on the session due to profit taking, a source said.

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