Exela, Diamond Sports, Talen, W&T, Peabody, Mallinckrodt notes gain; PBF declines

By Cristal Cody

Tupelo, Miss., June 30 – Exela Technologies, Inc.’s bonds soared in heavy secondary action on Wednesday following the Irving, Tex.-based software and services company’s completion of a $100 million at-the-market equity program.

Debt issuer Exela Intermediate LLC’s 10% senior secured first-lien notes due 2023 (Caa3/CCC-) jumped more than 20 points to head out near the 63¾ bid area on $61 million of paper traded, a source said.

Exela said in a news release on Wednesday that in addition to the completed equity program announced on May 27, it has entered into an additional $150 million at-the-market equity program.

Diamond Sports higher

In other heavy distressed trading on Wednesday, Diamond Sports Group LLC’s 5 3/8% senior secured notes due 2026 (B2/CCC+) climbed more than 2½ points to 64¾ bid on $21.5 million of volume, a source reported.

In the previous session, the notes fell 1½ points on $18 million of secondary supply.

The issue is down about 10 points since the start of June.

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

Diamond Sports’ 6 5/8% senior notes due 2027 (Caa2/CCC-) also added more than 2¼ points to 49¼ bid on over $9.5 million of trading supply.

Diamond Sports’ notes had softened following parent company Sinclair Broadcast Group, Inc.’s disclosure of unfinalized attempts to secure new funding for the Chesapeake, Va.-based sports broadcast group.

Sinclair reported in a June 21 filing with the Securities and Exchange Commission that it made two proposals to lenders and noteholders of Diamond Sports, including a March 22 proposal and an April 29 proposal, but has been unable to reach a definitive agreement.

Talen improves

Talen Energy Supply LLC’s distressed notes improved in midweek secondary trading after declining over the prior two sessions, sources said.

The company’s 6½% senior notes due 2025 (B3/CCC+/B) rose more than 3¼ points to the 69¼ bid area on more than $3 million of secondary activity.

The notes fell more than 5¾ points on Monday and lost 1 point in trading on Tuesday.

The issue has declined from the 84½ bid range at the end of May and the 82 bid area at the start of the year.

Talen’s 10½% notes due 2026 (B3/CCC+/B) traded about ¾ point better at the 73¼ bid area on Wednesday.

The 2026 notes shed 5¾ points on Monday and dropped 1¾ points in the previous session.

The bonds have softened from 91 bid at the end of May and the 89 bid area in early January.

On June 16, Moody’s Investors Service lowered The Woodlands, Tex., and Allentown, Pa.-based power company’s outlook to negative from stable.

W&T gains, PBF slips

In other distressed energy issues, Houston-based oil and gas producer W&T Offshore Inc.’s 9¾% senior secured notes due 2023 (Caa2/B) rose ½ point to 97 bid over the session, a source said.

The notes have improved from the 72¾ bid area at the start of the year.

Calgary, Alta.-based PBF Holding Co. LLC’s 7¼% senior notes due 2025 (B3/B+/B+) softened about 1¾ points to the 76 bid area on Wednesday, a source said.

The notes from Parsippany, N.J.-based petroleum refiner PBF Energy Inc.’s subsidiary dropped more than 1¾ points on Monday and declined more than 1½ points on Tuesday.

The issue traded at 64½ bid at the start of the year.

Oil prices were mixed on the day.

North Sea Brent crude oil futures for August deliveries settled unchanged at $74.76 a barrel.

West Texas intermediate crude oil benchmark futures for August deliveries added 49 cents to settle at $73.47 a barrel.

Overall market tone was mixed.

The iShares iBoxx High Yield Corporate Bond ETF closed up 3 cents at $88.04.

Elsewhere in the energy space, Peabody Energy Corp.’s 6 3/8% notes due 2025 (Caa1/CCC) traded 1½ points higher at 74 bid on $4 million of volume on Wednesday, according to a market source.

The St. Louis-based coal producer’s notes are trading more than 15 points better month to date and about 20 points higher since the start of the year.

Washington Prime softens

In other distressed secondary action, Washington Prime Group, LP’s 6.45% notes due 2024 (C/D/CC) dipped about ¼ point to the 65 bid area in strong trading activity, a source said Wednesday.

The notes are mostly unchanged month to date.

Washington Prime Group Inc. filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas on June 13.

A hearing on approval of the Columbus, Ohio-based shopping center real estate investment trust’s disclosure statement is scheduled for July 12.

Mallinckrodt up

Bankrupt pharmaceuticals maker Mallinckrodt plc’s 5 5/8% notes due 2023 were seen going out Wednesday at 70 bid, about ¾ point better than where the issue last traded on Monday, a source said.

The notes have improved from 36½ bid in early 2021.

Mallinckrodt filed a new joint Chapter 11 plan of reorganization and received conditional approval of its disclosure statement on June 16.

A hearing to confirm the plan is scheduled for Sept. 21-22.

Mallinckrodt, which has principal offices in Dublin and St. Louis, filed for Chapter 11 bankruptcy on Oct. 12, 2020 in the U.S. Bankruptcy Court for the District of Delaware.

Endo steadies

Elsewhere in the distressed pharmaceuticals space, Endo Finance LLC’s 6% senior notes due 2028 (Caa2/CCC+) were mostly unchanged at 57¼ bid on Wednesday, a source said.

The notes have improved about ¾ point since Friday but remain off the 84 bid area seen at the beginning of 2021.

Parent Dublin-based pharmaceuticals maker Endo International plc reported soft first-quarter earnings and revenue in May.

The company will release its second-quarter results on Aug. 5.

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