Bombardier notes drop after sale update; Occidental Petroleum higher in energy sector

By James McCandless

San Antonio, Aug. 10 – Manufacturing and energy names saw their distressed tranches hold focus as Monday ended.

Bombardier Inc.’s notes dropped after the company acquiring its railroad segment said it would consider second-quarter results in negotiations.

The 7 7/8% senior notes due 2027 declined by 2½ points to close at 76 bid. The 6% senior notes due 2026 were docked 3¼ points to close at 87½ bid.

The Montreal-based air and rail manufacturer’s structure was under pressure on Monday on news that the buyer of its rail unit would factor in second-quarter results amid closing negotiations.

For the second quarter, the company reported a loss of 30 cents per share and revenues of $2.7 billion.

Sales dropped by 37%.

In the energy space, Occidental Petroleum Corp.’s issues pushed higher in the run-up to its second-quarter earnings results.

The 2.9% senior notes due 2024 picked up ½ point to close at 94¾ bid. The 2.7% senior notes due 2022 rose ½ point to close at 97½ bid.

Before the Monday afternoon release of its second-quarter results, the Houston-based independent oil and gas producer’s issues were positive.

After the close, the company reported a loss of $1.76 per share, wider than the $1.70 per share loss that analysts expected.

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