CHC debt weakens post-earnings; MolyCorp dives; Verso rises on upgrade; Puerto Rico eyed

By Stephanie N. Rotondo

Phoenix, June 30 – The broader markets were moving up Tuesday on hopes Greece could get a last-minute debt deal together, but that wasn’t helping some distressed bonds all that much.

For instance, CHC Helicopter bonds took a hit after its parent company, CHC Group, reported quarterly and annual financial results that were worse year over year.

CHC Helicopter’s 9¼% notes due 2020 declined Tuesday after the parent company held a conference call to discuss its latest financial results.

Earnings for the fiscal 2015 fourth quarter and for the year were released Monday and the call was scheduled for early Tuesday.

A trader saw the bonds dropping 4½ points to 73¼. Another trader pegged the issue at “+/-73,” which he said was “down a couple points.”

MolyCorp Inc. – the rare earth metals mining company that filed for bankruptcy last week – was also quite a bit lower.

But on the plus side, Verso Paper Corp. was moving upward following a rating upgrade from Standard & Poor’s. The bonds had been on the decline recently, though on no fresh news.

In distressed municipal debt Puerto Rico’s general obligation debt “remained active,” a trader said. S&P cut the island’s rating on Tuesday, following a similar move by Fitch Ratings on Monday.

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