Travelport bonds end run-up, fall with earnings; Radian Group wraps tender offer, debt weakens

By Stephanie N. Rotondo

Portland, Ore., March 22 - Distressed debt was on the decline Thursday, following the trend set by the equity markets.

Travelport LLC's debt has been running up recently, though there was no news to base the gains on. The climb up stuttered during Thursday's session, after the company reported its fourth-quarter and full-year results.

Meanwhile, Radian Group Inc. was weaker on the day. The company released the results of its tender offer for the 5 5/8% notes due 2013 early on in the day.

Overall, traders said it continued to be on the slow side. One trader attributed the muted market to people being on spring break. Another trader pointed to another round of new high-yield issues.

Travelport falls post-numbers

A trader said Travelport's floating-rate notes due 2014 were ending a point higher Thursday at 571/2.

However, another market source saw the 9 7/8% notes due 2014 slipping slightly, with the paper opening at 68 and closing at 671/2.

The 11 7/8% notes due 2016 were following that trend as well, starting the day at 37 and closing around 36.

As previously reported, the bonds have been on a tear of late, though there was no news to cause the gains. The modest declines on Thursday came on the back of the company's earnings release.

For the fourth quarter, the Atlanta-based travel services company reported revenues of $465 million, a 3% increase year over year. Revenues for the full year rose 2% to $2.035 billion.

However, the loss for the fourth quarter was higher at $82 million, versus $69 million the year before. For the year, profit was $175 million.

Radian slips as tender wrapped

Radian Group's 5 3/8% notes due 2015 were losing ground Thursday after the company announced the final results of its tender for the 5 5/8% notes due 2013.

A trader called the 5 3/8% notes down 1½ points at 76.

At another shop, a source saw the paper open around 77, only to fall back to 76 by day's end.

The Philadelphia-based private mortgage insurance provider said Thursday that it had received $146.48 million out of a possible $150 million of bonds. Those participating in the tender will receive $900 per every $1,000 of notes submitted.

Holders will also receive accrued dividends up to the settlement date of the tender offer.

Dex paring down debt

A trader said he was seeing 30 bids for Dex One Corp.'s 12% PIK notes due 2017.

Earlier in the week, the Cary, N.C.-based phonebook publisher said it was tendering for a portion of the bonds. The company is looking to redeem about $26 million of debt at a discounted price of $270 to $300 per $1,000 of notes tendered.

The final price will be set via a Dutch auction.

Additionally, Dex said it and its subsidiaries had successfully completed a discounted loan buyback. The company paid $70 million for about $142 million in bank debt. Of the three loans bought back, two of the offers were oversubscribed.

"We will continue to take steps to strengthen our balance sheet," said Alfred Mockett, chief executive officer, in a press release. "Given the significant level of interest in our tender offers, we are able to reduce a meaningful amount of our outstanding debt obligations. As a result of our debt restructuring initiatives and other obligatory payments, we are targeting the retirement of at least $500 million of total debt in 2012."

Broad market loses grip

In the rest of the distressed marketplace, a trader saw Exide Technologies Inc.'s 8 5/8% notes due 2018 falling 3 points on no news to finish around 84.

Clear Channel Communications Inc.'s 10¾% notes due 2016 meantime dropped over 2 points to 76, the trader said.

Also weaker were Edison International Inc.'s 7% notes due 2017, which fell 1½ points to 62.

© 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.