Diamond Sports weakens; McGraw-Hill, West Corp. jump; Transocean holders hold off

By Abigail W. Adams

Portland, Me., Oct. 27 – There were some large price movements in distressed debt credits on Tuesday with the prospects of some paper improving and others deteriorating.

Diamond Sports Group LLC and Diamond Sports Finance Co.’s senior notes continued their downward spiral as bondholders brace for a possible restructuring.

While volume was light, McGraw-Hill’s 7 7/8% senior notes due 2024 jumped more than 8 points.

Fellow Apollo Global Management subsidiary West Corp.’s 8½% senior notes due 2025 were also on the rise with Apollo slated to report earnings on Thursday.

Meanwhile, the majority of holders of Transocean Ltd.’s 6½% senior notes due Nov. 15, 2020 held onto their soon-to-mature notes with few participating in the company’s tender offer.

Diamond Sports slides

Diamond Sports’ senior notes continued their downward spiral in active trading on Tuesday as holders brace for a possible restructuring.

The sports broadcaster’s 5 3/8% senior secured notes due 2026 traded to a new low of 57¼ in intraday activity, a source said.

However, the notes gained strength into the close, ending the day at 58¾.

There were more than $30 million of the bonds on the tape during Tuesday’s session.

Diamond Sports’ 6 5/8% senior notes due 2027 dropped another 2 points to trade on a 38-handle.

The bonds saw more than $15 million in reported volume.

Diamond Sports’ senior notes have been in a tailspin since news broke the company may pursue a restructuring of its debt.

While the notes have long struggled, both the secured and unsecured tranches have dropped more than 10 points since news about the possible restructuring broke last week, a source said.

Apollo’s earnings

Apollo Global Management subsidiaries saw large price movements on the eve of their parent company’s earnings reports.

While volume was light, McGraw-Hill’s 7 7/8% senior notes due 2024 jumped more than 8 points.

The notes were trading in the 61¾ to 62 context on Monday.

They climbed to a 70-handle on Tuesday.

The textbook publisher’s notes were gaining on the heels of positive earnings reports from several education technology companies, a source said.

West Corp., a telecommunication company which is also a subsidiary of Apollo, also saw a large jump in its senior notes.

The 8½% notes due 2025 were up more than 3¾ points to close the day at 90¾, a source said.

Apollo is slated to release earnings on Thursday.

Transocean holders hold

Few holders of Transocean’s 6½% senior notes due Nov. 15, 2020 participated in the company’s tender offer.

Only $36 million of the $190 million outstanding of the 6½% notes were tendered as part of the any-and-all tender offer, Prospect News reported.

The offshore drilling contractor was offering $970 per $1,000 principal amount.

“They want par,” a source said.

© 2015 Prospect News.
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