Diamond Sports notes up in heavy trading; Frontier Communications active; Intelsat quiet

By Cristal Cody

Tupelo, Miss., April 26 – Diamond Sports Group LLC’s bonds saw heavy trading in the distressed secondary market over Monday’s session.

The company’s 6 5/8% senior notes due 2027 (Caa2/CCC-) rose 2 3/8 points to 50 5/8 bid on more than $27.6 million of trading volume as reports circulated of potential financing for the company, a source said.

The notes have softened from the start of the year in the 60 bid range.

Diamond Sports’ 5 3/8% senior secured notes due 2026 (B2/CCC+) also traded more than 1½ points better at 72 bid on more than $14 million of secondary volume during the session.

The issue traded at the start of the year at 81¼ bid.

Parent company Sinclair Broadcast Group, Inc. had reported in February soft guidance for the Chesapeake, Va.-based sports broadcast group and an interest in liability management initiatives that could include a debt exchange or redemption.

Frontier better

Frontier Communications Corp.’s bonds continued to trade heavily on Monday as the company preps for its April 30 emergence from Chapter 11 bankruptcy, according to a market source.

Frontier’s 11% senior notes due 2025 climbed to 75¼ bid from 74½ bid on Friday and the 68 bid area at the start of the month.

The Norwalk, Conn.-based telecommunications company announced Friday that its new common stock will begin trading on the Nasdaq on May 4 under the ticker “FYBR.”

Frontier plans to form a new eight-member board after the restructuring is completed.

The company filed for Chapter 11 on April 14, 2020 in the U.S. Bankruptcy Court for the Southern District of New York.

Under the restructuring plan announced in April with unsecured bondholders representing more than 75% of the company’s approximate $11 billion of outstanding unsecured bonds, Frontier expects to eliminate more than $10 billion of debt.

Frontier said the restructuring agreement leaves unimpaired all general unsecured creditors and holders of its secured and subsidiary debt.

Intelsat Jackson soft

Intelsat Jackson Holdings SA’s bonds were mostly quiet in the distressed secondary market on Monday as the company’s disclosure statement hearing was continued, a source said.

Intelsat Jackson’s 5½% senior notes due 2023 traded in thin volume near the 60 bid area, down 1½ points from the start of the month.

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 has been continued to May 27, according to a filing on Friday in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division.

The satellite operator filed for Chapter 11 bankruptcy on May 4, 2020.

Oil, gas bonds down

Market tone mostly soft as the week kicked off and ahead of the Federal Reserve’s monetary policy rate decision on Wednesday.

The iShares iBoxx High Yield Corporate Bond ETF closed down 4 cents at $87.33.

The S&P U.S. High Yield Corporate Distressed Bond index finished Friday with a 2.15% month-to-date total return and a 19.39% year-to-date total return.

Oil prices ticked lower on Monday.

North Sea Brent crude oil futures for June deliveries fell 46 cents to settle at $65.65 a barrel.

West Texas intermediate crude oil futures for June deliveries dropped 23 cents to settle at $61.91 a barrel.

Distressed oil and gas bonds were mixed in light trading action over the day, a source said.

Oil and gas exploration company Moss Creek Resources Holdings Inc.’s 7½% senior notes due 2026 (Caa2/B) were quoted at 88¼ bid, down 1¾ points from the same day a week ago.

Houston-based oil and gas producer W&T Offshore Inc.’s 9¾% senior secured notes due 2023 (Caa2/B) traded Monday at 88½ bid, ½ point softer from the same session last week.

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