Community Health ‘wildly active’; Valeant up across the board; retailers drop

By Colin Hanner

Chicago, March 24 – On an otherwise quiet session, Community Health Systems, Inc. was “wildly active” in the distressed market, a trader said, in response to the chaotic unfolding of a health care bill whose vote was shelved for the second-straight day in the House.

“The market was, more or less, sitting on its hands,” a trader said. “Health care was a reason for the market to be on the sidelines, an excuse not to do stuff.”

Activity was more focused on new deals in the high-yield space, the trader said, with new deals from AK Steel Corp., First Quantum Minerals Ltd. and Micron Technology Inc. taking attention from the distressed market.

Yet, the Franklin, Tenn.-based Community Health was up across several issues, as were several other high-yield hospital names, as the likelihood of the American Health Care Act passing in the House looked anything but possible on Friday afternoon, especially when the vote was canceled around 3:30 p.m.

Valeant Pharmaceuticals International Inc. returned to the market as one of the more active names and traded marginally higher across the board. On the week, the company announced it had finalized refinancing transactions.

Distressed retailers saw a few noteworthy trades on the day, particularly from Gymboree Corp. and Claire’s Stores Inc., though Neiman Marcus Group, Inc. saw almost zero activity.

Intelsat Luxembourg Holdings SA was “trading a bit more today,” a trader said, though remained about flat on the day.

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