Hertz, Shelf Drilling, Diamond Sports, Peabody decline; Intelsat better; NGL, Nabors up

By Cristal Cody

Tupelo, Miss., March 2 – Hertz Corp.’s distressed paper softened on Tuesday after the company reported a buyout offer and filed a joint Chapter 11 bankruptcy plan of reorganization.

The company’s 5½% notes due 2024 traded heavily with the notes last seen softer at 78½ bid, a market source said.

The notes traded Monday from 77½ bid to as high as 84 bid going out.

Hertz reported in the filing with the U.S. Bankruptcy Court for the District of Delaware on Tuesday that it received a buyout offer from Knighthead Capital Management, LLC and Certares Opportunities LLC, which have committed to invest up to $4.2 billion to purchase a majority and up to all of the company’s common stock after it exits bankruptcy.

A hearing on the offer is scheduled for April 16.

The car rental operator expects to exit bankruptcy in the summer.

Intelsat Jackson improves

Intelsat Jackson Holdings SA’s bonds are improving after trading lower in mid-February following the parent company’s Chapter 11 reorganization announcement, a source said Tuesday.

Intelsat Jackson’s 8½% senior notes due 2024 were quoted at 65¾ bid in heavy secondary volume over the day.

The notes have improved from the 60¼ bid range seen in mid-February after parent Intelsat SA announced that it reached a bankruptcy restructuring plan that will cut its debt by more than half to $7 billion.

The satellite services provider has requested a March 17 hearing for court approval of the plan.

Intelsat filed for Chapter 11 bankruptcy in May 2020 in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division.

Energy bonds mixed

Distressed oil and gas bonds were mixed in secondary trading over the day as oil prices continued to slump ahead of an OPEC meeting scheduled Thursday.

West Texas intermediate crude oil for April deliveries settled 89 cents lower at $59.75 a barrel, while futures for May deliveries dropped 85 cents to $59.57 a barrel.

North Sea Brent crude oil futures for May deliveries fell 99 cents to settle Tuesday at $62.70 a barrel.

Shelf Drilling Holdings Ltd.’s 8¼% senior notes due 2025 (Caa3/CCC+) headed out more than 2½ points weaker at 64 bid, according to a market source.

The issue has improved since trading at the start of February at 55¼ bid.

Oil and gas midstream company NGL Energy Partners LP’s 6 1/8% senior notes due 2025 (Caa1/CCC+) edged up about ½ point to 85 bid over the session, a source reported.

Also, oil and gas drilling contractor Nabors Industries Inc.’s 5¾% senior notes due 2025 (Caa2/CCC-) rose ¼ point to hit 80¾ bid after trading up ¾ point in the prior session.

Market tone was mixed with major stock indices lower on Tuesday.

The iShares iBoxx High Yield Corporate Bond ETF declined 13 cents, or 0.15%, to end the day at $86.97.

Peabody Energy softens

Coal producer Peabody Energy Corp.’s 6 3/8% senior secured notes due 2025 (Caa1/CCC-) fell about ¾ point to 49 bid on Tuesday, a market source said.

The notes have softened 10 points from where the issue traded at the start of February.

Peabody Energy completed a distressed exchange of its 6% secured notes due 2022 in January for new 10% secured notes due 2024 and 8½% secured notes due 2024.

Diamond Sports lower

In other distressed secondary trading, Diamond Sports Group LLC’s 5 3/8% senior secured notes due 2026 (Ba3/CCC+) declined 1 5/8 points to 69 1/8 bid, a market source said.

The notes were last seen Friday at 71 bid, 6 points softer on the week.

Diamond Sports Group’s 6 5/8% senior notes due 2027 (B3/CCC-) traded nearly ¾ point lower over the day to head out in the 51¼ bid area, the source said.

The notes were flat at 52 bid on Monday after closing Friday 5 points down on the week.

Diamond Sports Group’s bonds fell over the back half of last week after parent company Sinclair Broadcast Group, Inc. reported soft 2021 guidance for the sports segment and reported interest in liability management initiatives, which could include a debt exchange or redemption.

S&P Global Ratings announced that it would view those actions as equivalent to a default.

© 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.