Exela notes climb higher; Diamond Sports drops; Peabody, Transocean improve; GTT weaker

By Cristal Cody

Tupelo, Miss., July 1 – Exela Technologies, Inc.’s bonds continued to climb in heavy secondary activity on Thursday after the Irving, Tex.-based software and services company completed a $100 million at-the-market equity program.

Debt issuer Exela Intermediate LLC’s 10% senior secured first-lien notes due 2023 (Caa3/CCC-) rose about 4¾ points to 68½ bid, a source said.

On Wednesday, the notes jumped more than 20 points to trade near the 63¾ bid area on $61 million of volume.

The issue was quoted at 31 bid as the year opened.

In addition to the $100 million completed program, Exela said Wednesday that it has entered into an additional $150 million at-the-market equity program.

Diamond Sports declines

Meanwhile, Diamond Sports Group LLC’s bonds gave back some gains made in the prior session, a source said.

The 5 3/8% senior secured notes due 2026 (B2/CCC+) fell about ¾ point on Thursday to 64 bid.

The notes climbed more than 2½ points on $21.5 million of volume on Wednesday after softening 1½ points on $18 million of secondary supply during Tuesday’s session.

The issue is down about 10 points from a month ago and softer than where the notes traded at 81¼ bid at the start of the year.

Diamond Sports’ 6 5/8% senior notes due 2027 (Caa2/CCC-) fell 1 point to 48¼ bid on Thursday.

The 6 5/8% notes improved more than 2¼ points on over $9.5 million of trading volume in the previous session.

Diamond Sports’ notes had declined after parent company Sinclair Broadcast Group, Inc.’s June 21 disclosure of unfinalized attempts to secure new funding for the Chesapeake, Va.-based sports broadcast group.

Sinclair reported 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.

Peabody, Transocean up

Looking at the distressed energy space, Peabody Energy Corp.’s 6 3/8% notes due 2025 (Caa1/CCC) improved more than ¾ point to trade better than 74¾ bid going out after adding 1½ points on Wednesday, a market source said.

The St. Louis-based coal producer’s notes have added about 20 points since the end of May.

Meanwhile, Vernier, Switzerland-based offshore driller Transocean Inc.’s 7½% senior notes due 2026 (Ca) rallied 1¾ points to 88¼ bid, a source said.

Oil prices were mixed.

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

West Texas intermediate crude oil benchmark futures for August deliveries rose $1.76 to settle at $75.23 a barrel.

Overall market tone was stronger ahead of the Labor Department’s June jobs report due on Friday.

The iShares iBoxx High Yield Corporate Bond ETF closed up 17 cents at $87.92.

GTT bonds soft

In other distressed secondary activity, GTT Communications, Inc.’s 7 7/8% senior notes due 2024 (/C/) traded Thursday in the 10 bid area, down about 3 points from June, according to a market source.

The notes traded in the 40 bid area at the start of the year.

On Monday, GTT, a McLean, Va.-based telecommunications and internet services provider, reported in an 8-K filing with the Securities and Exchange Commission that it received an extension under its term loan and revolving credit agreements and a forbearance agreement on the 7 7/8% notes to deliver its audited consolidated financial statements. The new deadline is July 6.

CBL trades higher

Elsewhere, bankrupt real estate investment trust CBL & Associates LP’s 5¼% notes due 2023 rose ¼ point in strong trading activity to 56¾ bid, a source said.

The bonds are mostly unchanged from a month ago but have improved from the 40 bid range at the start of the year.

The Chattanooga, Tenn.-based owner and developer of malls and shopping centers reported on March 22 that it expects to eliminate more than $1.6 billion of debt under a new bankruptcy restructuring plan.

The company received an extension through July 29 to solicit votes.

CBL and 176 affiliated companies filed for Chapter 11 bankruptcy on Nov. 1 and Nov. 2, 2020 in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.

On Wednesday, CBL reported in a court filing the company had a $56,000 net income on $32.6 million of revenue for the May period, up from a $2.6 million loss on $29.86 million of revenue for the April period.

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