Hertz heads higher; AMC, PBF notes improve; Transocean flat; Peabody stronger on week

By Cristal Cody

Tupelo, Miss., May 14 – Hertz Corp.’s bonds traded about 1 to 1½ points better on Friday after the company filed a new Chapter 11 bankruptcy plan of reorganization.

Hertz’s 5½% notes due 2024 rose 1 point to 103½ bid in heavy volume, a source said.

Hertz Global Holdings, Inc. filed a new Chapter 11 plan of reorganization and disclosure statement following its selection of a revised proposal from Knighthead Capital Management LLC, Certares Opportunities LLC and Apollo Capital Management, LP to provide the equity capital needed to fund its revised plan of reorganization and bankruptcy exit.

The Estero, Fla.-based car rental operator announced Wednesday that it selected a revised proposal from the affiliates.

A court hearing to confirm Hertz's plan of reorganization is scheduled for June 10.

Hertz said it is working toward a Chapter 11 exit by June 30.

The company filed for Chapter 11 bankruptcy on May 22, 2020 in the U.S. Bankruptcy Court for the District of Delaware.

AMC ticks up

AMC Entertainment Holdings, Inc.’s 12% second-lien senior secured notes due 2026 (Ca/C) traded more than 1 point higher at 91 bid on nearly $18.5 million of secondary action by the end of the day, a source said.

The 12% notes started the year at 27 bid.

AMC announced Thursday that it completed its previously reported registered offering of 43 million shares of class A common stock that was launched on April 29.

The company raised approximately $428 million of new equity capital, before commissions and fees, at an average price of $9.94 per share.

The Leawood, Kan.-based movie theater owner has reopened the majority of its U.S. locations.

PBF gains

Parsippany-Troy Hills, N.J.-based petroleum refiner PBF Holding Co. LLC’s 6% senior notes due 2028 (B3/B+/B+) were quoted up about 1 point at 79 bid in heavy secondary supply on Friday, a source said.

On Thursday, the notes were up ¼ point on more than $15 million of volume and added nearly 3 points over the prior week on $58 million of paper traded.

Transocean flat

Oil prices recovered some of Thursday’s losses on Friday.

West Texas intermediate crude oil benchmark futures for June deliveries, which settled $2.26 lower in the prior session, rose $1.55 to $65.37 a barrel.

North Sea Brent crude oil futures for July deliveries settled up $1.66 to $68.71 a barrel after declining $2.27 on Thursday.

Offshore driller Transocean Inc.’s bonds were mixed after softening about 1½ to 2¼ points on Thursday, a source said.

The company’s 7½% senior notes due 2026 (Ca) fell ¼ point to 81¾ bid in strong trading activity.

Transocean’s 11½% senior guaranteed notes due 2027 (Caa3/CCC) traded flat at 101½ bid late afternoon after softening ½ point in the prior session.

The 11½% notes rallied more than 3½ points in the prior week on $125 million of secondary volume.

Overall market tone stayed strong Friday with stock indices all higher on the day.

The iShares iBoxx High Yield Corporate Bond ETF rose 28 cents to close at $87.21.

Peabody in focus

Meanwhile, St. Louis-based coal producer Peabody Energy Corp.’s 6 3/8% notes due 2025 (Caa1/CCC) traded Friday mostly unchanged at the 55½ bid area after gaining nearly 2¼ points on Thursday, a source said.

The notes have rallied about 11¼ points in the past week.

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