Hi-Crush notes gain after bankruptcy filing; AMC better on financing news

By James McCandless

San Antonio, July 13 – At the start of a new week in activity, the distressed debt space focused on energy and entertainment newsmakers.

Hi-Crush Inc.’s notes gained ground after making a pre-packaged Chapter 11 bankruptcy filing over the weekend.

Amid a decline in oil futures, SM Energy Co.’s issues matched that movement while Occidental Petroleum Corp.’s and Whiting Petroleum Corp.’s paper varied in direction.

Meanwhile, AMC Entertainment Holdings, Inc.’s notes moved to better levels after securing an agreement with a majority of holders for an amended exchange.

Housewares marketer Tupperware Brands Corp.’s issues picked up steam as it received a ratings upgrade.

In the retail space, Party City Holdco Inc.’s paper tracked higher after announcing an extension of an exchange offer.

Sector peer L Brands, Inc.’s notes diverged by the end of the session.

Elsewhere, Diebold Nixdorf, Inc.’s issues were lifted after its recent pricing of five-year senior secured notes.

Hi-Crush gains

Hi-Crush’s notes were spotted gaining ground through Monday’s session, traders said.

The 9½% senior notes due 2026 picked up ½ point to close at 3½ bid.

On Sunday, the Houston-based hydraulic fracking company filed for Chapter 11 bankruptcy to implement a restructuring support agreement reached with holders owning or controlling 94% of the outstanding 2026 notes, Prospect News reported.

The name said that the pre-arranged plan will lead to the elimination of about $450 million of unsecured note debt and a more than $43 million ongoing reduction in annual interest expense.

Current equity will be canceled while new equity will consist of significant general unsecured claims.

Concurrently, Hi-Crush has received commitments from lenders for $65 million in debtor-in-possession and exit financing.

The company received downgrades from S&P Global Ratings and Moody’s Investors Service.

Oil names vary

Amid a decline in oil futures, distressed energy tranches saw varied movements, market sources said.

West Texas Intermediate crude oil futures for August delivery were cut back by 45 cents to settle at $40.10 per barrel.

North Sea Brent crude oil futures for September delivery ended the session at $42.72 after a 52-cent drop.

Denver-based independent oil and gas producer SM Energy’s issues matched the movements of oil futures.

The 5% senior notes due 2024 shaved off ¾ point to close at 56¾ bid. The 6 1/8% senior notes due 2022 declined by 1½ points to close at 74 bid.

Houston-based producer Occidental Petroleum’s paper varied in direction.

The 2.9% senior paper due 2024 rose ¾ point to close at 90¼ bid. The 2.7% senior paper due 2022 held level at 94½ bid.

Whiting Petroleum, another Denver-based E&P, saw its notes end with mixed results.

The 6¼% senior notes due 2023 tacked on ½ point to close at 16½ bid. The 6 5/8% senior notes due 2026 closed level at 18 bid.

AMC better

Meanwhile, movie-related name AMC’s issues moved to better levels, traders said.

The 6 1/8% senior subordinated notes due 2027 gained ½ point to close at 30 bid. The 5¾% senior subordinated notes due 2025 garnered ½ point to close at 30 bid.

Early Monday, the Leawood, Kan.-based movie theater chain announced that it had entered into binding written agreements with an ad hoc group of holders of 73% of its approximately $2.3 billion in senior subordinated notes, Prospect News reported.

The deal is meant to support an amendment launched Friday to an exchange offer that would allow the company to restructure a majority of its debt securities on a consensual basis.

Also part of the deal is $300 million in new capital, with $200 million being provided through a rights offering to existing debt holders and $100 million coming from a first-lien notes purchase from private equity name Silver Lake Partners.

Tupperware up

Household products name Tupperware’s paper picked up steam, market sources said.

The 4¾% senior paper due 2021 shot up 4 points to close at 70½ bid.

The Orlando, Fla.-based marketer of housewares’ structure was positive after receiving a ratings upgrade from S&P.

The agency lifted the company’s issuer rating to CCC- from SD while keeping the rest of its ratings at D.

S&P said that it upgraded the name after it completed a tender offer for about $97.6 million of its $600 million of senior unsecured notes.

The outlook is developing.

Party City higher, L Brands diverges

In the retail space, Party City’s notes tracked higher, traders said.

The 6 5/8% senior notes due 2026 rose ¼ point to close at 15¼ bid.

News broke on Monday that the Elmsford, N.Y.-based party supplies retailer had announced an extension of its exchange offer for any and all of its 6 1/8% senior notes due 2023 and $500 million of its 2026 notes, Prospect News reported.

Current participation in the exchange offers is at 93% as of the last report, or $327.1 million aggregate principal amount, for the 2023 notes and at 75%, or $378.6 million aggregate principal amount, for the 2026 notes.

Last week, the company’s common stock regained compliance with the New York Stock Exchange’s listing standards.

Columbus, Ohio-based sector peer L Brands’ issues diverged.

The 6¾% senior notes due 2036 were docked 1 point to close at 83 bid. The 5¼% senior notes due 2028 improved by 2¾ points to close at 83½ bid.

Diebold lifted

Elsewhere, Diebold’s paper was lifted by the end of the day, market sources said.

The 8½% senior paper due 2024 grabbed ¾ point to close at 85½ bid.

The North Canton, Ohio-based connected commerce company’s structure continued to receive more attention after bringing two new tranches of five-year senior secured notes to market late last week.

The company priced $700 million of 9 3/8% notes while Diebold Nixdorf Dutch Holding BV priced €350 million of 9% notes to yield 9 1/8%.

Those new notes were pretty firm today,” a trader said. “They hit the 102 context.”

With the proceeds and cash on hand, the name plans to repay part of the amounts outstanding under its senior credit facility, comprising all amounts outstanding on its term loan A facility and term loan A-1 facility and about $194 million of revolving credit loans.

© 2015 Prospect News.
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