iHeart bonds decline amid poor earnings; SandRidge bonds slip despite beating forecasts

By Stephanie N. Rotondo

Seattle, Nov. 5 – Another round of earnings was driving distressed bonds around on Thursday.

“There’s a lot of earnings coming out; I think people are digesting those,” a trader said.

iHeartMedia Inc. reported a wider loss for the quarter. In response, its bonds and bank debt took a hefty hit.

“The numbers were out and they were bad,” a trader said.

SandRidge Energy Inc. also came out with fresh numbers, posting a loss versus a profit the year before. While the figures beat estimates, the bonds declined during the session.

The oil producer’s equity, however, firmed up.

In the land of distressed preferred stocks, Fannie Mae and Freddie Mac paper ended on higher ground after Fannie reported a profit. The results came just days after Freddie reported its first quarterly loss in four years.

iHeartMedia’s debt dove on Thursday after the company reported weak earnings.

In the bonds, a trader said the name was off anywhere from 5¾ points to 9½ points on the day.

The 11¼% notes due 2021 were at the lower end of the range, closing at 78. The 10% notes due 2018 were down the most, ending at 40½.

However, the trader noted that the latter was down in just a single trade.

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