J.C. Penney notes higher on CEO news; Intelsat gains after new issue; energy names up

By James McCandless

San Antonio, Oct. 3 – The distressed debt market saw broad gains across several sectors on Wednesday.

J.C. Penney Co., Inc.’s notes gained after news broke late Tuesday that the company had selected a new chief executive officer.

The 8 5/8% notes due 2025 climbed 1¼ points to close at 69¾ bid. The 7 5/8% bonds due 2097 picked up 2½ points to end at 42¾ bid.

Sector peer Neiman Marcus Group, Inc.’s issues were also up amid chatter that the company is in talks with creditors to amend its credit agreement.

The 8% notes due 2021 added ¼ point to close at 66 bid. The 7 1/8% notes due 2028 also gained ¼ point to close at 82¼ bid.

Meanwhile, pet retailer PetSmart, Inc.’s paper was active but ended mixed.

Elsewhere, in the telecom space, Intelsat SA’s notes were moving higher a day after subsidiary Intelsat Jackson SA priced a $700 million issue. Frontier Communications Corp.’s tranches were gaining across the board.

Another rise in oil futures led to oil and gas names strengthening their positions again, with bellwethers improving for Sanchez Energy Corp., California Resources Corp. and Denbury Resources Inc.

FirstEnergy Solutions Corp.’s paper continues to trade higher after getting its bankruptcy plan approved in court last week.

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