Frontier Communications’ debt reverses course; Petsmart continues to fall; Denbury dips

By Stephanie N. Rotondo

Seattle, Sept. 12 – The distressed debt space was taking a backseat once again to new high-yield bond issues on Tuesday, though Frontier Communications Corp. was a close second.

The day’s trading surrounded the Southwestern Energy new issue, followed by the Charter Communications and Cheniere Energy new issues, a trader said.

However, “there was a ton of trading in Frontier,” the trader added.

Another trader noted that Frontier’s debt “rallied a bit in the afternoon.”

The gains in the name appeared to coincide with a presentation made by the company’s chief financial officer at Goldman Sachs Annual Communacopia Conference in New York. During the talk, R. Perley McBride gave a business update following hurricanes Harvey and Irma and also on the company’s cost-cutting initiatives.

Away from Frontier and the new issues, the retail sector continued to be on the radar.

A trader said Petsmart Inc. “continued to be under pressure,” with the 7 1/8% notes due 2023 hitting new lows.

He called the bonds off “another half a point” at 79½.

He also saw the 8 7/8% notes due 2025 trading as low as 80½.

In the oil and gas space, Denbury Resources Inc. was taking a hit, though there was no fresh news to act as catalyst.

One trader saw the 4 5/8% notes due 2023 declining “almost 2 points” to 41¾, while the 5½% notes due 2022 lost 1¼ points, ending at 43¾.

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