Revlon trades after plan preview; Sears paper attracts distressed interest; Emergent up

By Cristal Cody

Tupelo, Miss., Dec. 19 – Secondary trading stayed light on Monday in the riskiest of credits in the final week ahead of Christmas.

A handful of distressed names were active, sources reported.

Revlon Inc.’s notes were the “second most active” after the bankrupt company came out with a preview of a plan that wasn’t favorable to bonds, a source said.

Revlon Consumer Products Corp.’s 6¼% senior notes due 2024 were hovering around 5 bid.

Meanwhile, another bankrupt name was moving in the secondary market on Monday.

“The most active name, strangely, is the Sears bond,” a source said. “The 8% of ’19. I don’t know what the expectation is there.”

Sears Hometown Stores, Inc. filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Dec. 12.

Sears Holding Corp.’s 8% notes due Dec. 15, 2019 were trading between 2 and 3 bid over the session, the source said.

Emergent BioSolutions Inc.’s 3 7/8% guaranteed senior notes due 2028 (Caa1/B) also were active on nearly $12 million of secondary volume on Monday, a source said.

The bonds were quoted up 1¾ points at 39 bid.

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