Toys ‘R’ Us debt continues fall as shipments cut; iHeart ‘languishing’; oil names mixed

By Stephanie N. Rotondo

Seattle, Sept. 15 – Toys ‘R’ Us Inc. was the distressed debt market’s notable mover Friday, as the company’s bonds “keep getting slaughtered,” according to a trader.

The weakness in the name picked up on Thursday when it was reported that certain of the company’s vendors were scaling back shipments amid growing concerns that a bankruptcy filing is on the horizon.

But away from Toys, there were not many notable distressed names in the final day of the trading week.

“Everything has been new issue-driven of late,” he said.

There was “not a lot of activity” in iHeart Communications Inc. paper during the session, a trader said. “But there was no rebound. They’re still kind of languishing.”

Another trader said the 9% notes due 2022 dropped nearly a point to 69.

The San Antonio-based multimedia company has been working since April to exchange a large portion of its debt burden. Despite a number of extensions and deal sweeteners, investors have not been so keen to participate.

Meanwhile, the oil and gas arena was finishing the week with a mixed tone.

A trader said California Resources Corp.’s 8% second-lien notes due 2022 were up a quarter-point at 58¾. Denbury Resources Inc. paper was also better, its 4 5/8% notes due 2023 up almost a point at 46.

However, Jones Energy Inc.’s 6¾% notes due 2022 slipped almost half a point to 48½, he said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.