Exela gains; Talen, PBF lower; Endo declines; Mallinckrodt better; Diamond Sports mixed

By Cristal Cody

Tupelo, Miss., July 2 – Exela Technologies, Inc.’s bonds headed out Friday about 25 points better on the week following the Irving, Tex.-based software and services company’s completion of a $100 million at-the-market equity program on Wednesday.

During the Independence Day holiday-shortened trading session, debt issuer Exela Intermediate LLC’s 10% senior secured first-lien notes due 2023 (Caa3/CCC-) improved ¼ point to 69 bid on $9 million of volume, a source said.

On Wednesday, the notes jumped more than 20 points and added about 4¾ points on Thursday.

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

Exela also announced on Wednesday that it has entered into an additional $150 million at-the-market equity program.

Talen, PBF bonds dip

Talen Energy Supply LLC’s notes softened about ¾ point in distressed secondary trading on Friday, a source said.

Talen’s 10½% notes due 2026 (B3/CCC+/B) fell about ¾ point to 71½ bid on $2 million of volume.

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.

In other distressed energy issues, PBF Holding Co. LLC’s 6% senior notes due 2028 (B3/B+/B+) improved about ½ point to the 67½ bid area in light trading activity on Friday, a source said.

The bonds have softened from the 71 bid area the same day a week ago.

The issue from the Calgary, Alta.-based subsidiary of Parsippany, N.J.-based petroleum refiner PBF Energy Inc. traded at the 56¾ bid area at the start of the year.

Oil prices settled mostly higher.

North Sea Brent crude oil futures for September deliveries rose 33 cents to settle at $76.17 a barrel.

West Texas intermediate crude oil benchmark futures for August deliveries fell 7 cents to settle at $75.16 a barrel, while September deliveries added 3 cents to settle at $74.36 a barrel.

Overall market tone was stronger after the Labor Department’s release of the June jobs report.

Total non-farm payroll rose by 850,000 in June, stronger than market expectations of a 720,000 gain.

The unemployment rate increased to a seasonally adjusted 5.9% from 5.8% in May and above forecasts of a 5.6% rate for June.

The iShares iBoxx High Yield Corporate Bond ETF added 13 cents to close at $88.05.

Endo trades lower

In the distressed pharmaceuticals space, Endo Finance LLC’s 6% senior notes due 2028 (Caa2/CCC+) softened ¾ point to 67 bid on more than $1.6 million of volume, a source said.

The notes were about ½ point better from the same session a week ago 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.

Mallinckrodt better

Bankrupt pharmaceuticals maker Mallinckrodt plc’s bonds headed out Friday mostly stronger on the week, a source said.

The 5¾% notes due 2022 were quoted at 69 7/8 bid, 1/8 point higher on the day and 1 3/8 points better than the same session a week ago.

The bonds traded at 36¼ bid at the beginning of the year.

Mallinckrodt’s 5 5/8% notes due 2023 were last seen trading on Wednesday at 70 bid, about ¾ point higher from Monday.

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.

The company, based 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.

Diamond Sports mixed

Elsewhere on Friday, Diamond Sports Group LLC’s bonds were softer on the week, a source said.

The 5 3/8% senior secured notes due 2026 (B2/CCC+) traded at 64 1/8 bid, up 1/8 point for the day but more than 1 point off from the same session last week.

The notes are about 10 points softer from a month ago and remain down from trading at 81¼ bid at the start of the year.

Diamond Sports’ 6 5/8% senior notes due 2027 (Caa2/CCC-) dipped ¼ point to 48 bid on Friday.

The issue has softened about ¼ point on the week and 10 points from the same day a month ago.

The notes traded at the 60½ bid area as the year opened.

Diamond Sports’ notes weakened 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.

© 2015 Prospect News.
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