Digicel drops after earnings miss; PetSmart better as debt upgraded; Rite Aid better

By James McCandless

San Antonio, June 28 – Distressed debt trading centered on the telecom and retail sectors on Friday.

Digicel Group Ltd.’s notes saw a drop as bondholders become increasingly concerned about the company’s earnings and debt load.

Sector peer Frontier Communications Corp.’s issues were mixed.

Elsewhere, retailer PetSmart, Inc.’s paper closed better as a ratings agency issued an upgrade to its debt.

Drug store name Rite Aid Corp.’s notes gained again as the market continues to react to its new partnership with Amazon.com, Inc. and its latest earnings.

In oil and gas, Ensco Rowan plc’s issues were active but level as a ratings agency affirmed the company’s ratings.

As oil futures end mixed, California Resources Corp. and Weatherford International plc’s paper showed similar results as Halcon Resources Corp.’s notes declined.

Pharma name Teva Pharmaceutical Industries Ltd.’s issues also saw a mixed day.

Telecom name Digicel’s notes saw a drop on Friday, traders said.

The 8¾% notes due 2024 shed 2 points to close at 94½ bid. The 6% senior unsecured notes due 2021 fell 5¼ points to close at 74¾ bid.

The Kingston, Jamaica-based mobile phone network provider’s structure was under pressure on Friday after news broke that it had reported an earnings drop and an increase in its debt load.

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