CBL notes fall as interest payment skipped; Valaris paper eyed in energy space

By James McCandless

San Antonio, June 2 – Distressed debt trading focused on the retail and energy sectors on Tuesday

CBL & Associates Properties, Inc.’s notes fell after the company said that it would skip an interest payment.

The 5¼% senior notes due 2023 declined by 4¼ points to close at 21 bid. The 4.6% senior notes due 2024 fell 3½ bid.

During Tuesday’s activity, the Chattanooga, Tenn.-based real estate investment trust announced that it would be skipping an $11.8 million interest payment on the 2023 notes.

The company has entered into a 30-day forbearance period.

“I think they will restructure at the end of those 30 days,” a trader said. “It doesn’t look like they have a lot of revenue coming in.”

Last week, the company said that it had drawn $280 million from its credit facility and furloughed employees.

In the oil and gas space, Valaris plc’s paper saw varied movements after also announcing that it would miss payment on a coupon.

The 5.2% senior notes due 2025 tacked on ¼ point to close at 8¾ bid. The 7¾% senior notes due 2026 shed 1 point to close at 7½ bid.

On Monday, the London-based contract driller was another name to say that it would forego interest payments, totaling about $26 million.

© 2015 Prospect News.
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