Transocean, Nabors, Diamond Sports up; AMC higher; Washington Prime dips; Intelsat flat

By Cristal Cody

Tupelo, Miss., April 14 – Distressed energy bonds headed higher in the secondary market as oil prices soared on Wednesday.

Offshore driller Transocean Inc.’s 7½% senior notes due 2025 (Ca/CCC) added more than 2¼ points to 70 bid on $4 million of paper traded, a source said.

Oil and gas drilling contractor Nabors Industries Inc.’s 7¼% senior notes due 2026 (Caa1/CCC-) traded up 1 3/8 points to 86¾ bid in light secondary volume totaling $1 million.

West Texas Intermediate crude oil futures for May deliveries climbed $2.97 to settle at $63.15 a barrel, while June deliveries settled $2.98 higher at $63.22 a barrel.

North Sea Brent crude oil futures for June deliveries jumped $2.91 to settle at $66.58 a barrel.

Overall market tone remained mixed over the session with the iShares iBoxx High Yield Corporate Bond ETF down 4 cents at $87.13.

Diamond Sports recovers

Diamond Sports Group LLC’s 6 5/8% senior notes due 2027 (B3/CCC-) recovered 1½ points to head out Wednesday at 47 bid on $10 million of issues traded over the session, a market source said.

The notes had declined 1½ points in the prior session on $12.5 million of trading supply.

The issue started the year in the 60 bid range.

The Chesapeake, Va.-based sports broadcast group’s bonds have weakened since parent company Sinclair Broadcast Group, Inc. reported in February soft guidance for the subsidiary and an interest in liability management initiatives that could include a debt exchange or redemption.

AMC notes improve

AMC Entertainment Holdings, Inc.’s 12% second-lien senior secured notes due 2026 (Ca/C) traded nearly 2 points higher at the 89 bid area on $9 million of secondary volume on Wednesday, a source said.

The notes were quoted at the start of the year at 27 bid.

The Leawood, Kan.-based movie theater owner reported in March that 98% of its U.S. locations have reopened.

Washington Prime softens

Washington Prime Group, LP’s 6.45% notes due 2024 (C/D/C) fell nearly 1 point to 61 bid during Wednesday’s session, a market source said.

Trading was light with just $1 million of paper traded.

The notes started the year in the 61 bid range.

Washington Prime Group, Inc. reported in an 8-K filing with the Securities and Exchange Commission on Monday that its partnership lenders and noteholders have agreed to extend a forbearance period to April 28.

The company disclosed in February that the operating partnership withheld a $23.2 million interest payment on the notes that was due Feb. 15.

The Columbus, Ohio-based shopping center real estate investment trust said it is continuing to engage in negotiations and discussions with the noteholders and lenders to restructure its capital structure.

Intelsat Jackson stable

Intelsat Jackson Holdings SA’s bonds were flat in trading on Wednesday, a market source said.

Intelsat Jackson’s 5½% senior notes due 2023 were unchanged at 61½ bid. The notes have softened from 68 bid at the start of the year.

Intelsat Jackson’s 8½% senior notes due 2024 were steady at 63 bid on Wednesday.

The notes traded at 71 bid in January.

Parent company Intelsat SA announced in February that it reached a Chapter 11 bankruptcy restructuring plan that would lower its debt to $7 billion from nearly $15 billion.

A hearing on the disclosure statement was extended to April 27, according to a court filing on Wednesday.

The satellite operator filed for Chapter 11 bankruptcy on May 4, 2020 in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division.

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