Wesco notes mixed; Team Health on way up; Envision Healthcare stronger; Logan slides

By Cristal Cody

Tupelo, Miss., Feb. 8 – Wesco Aircraft Holdings Inc.’s secured bonds (Caa3/CCC+) were mixed on Tuesday after improving about 1¼ points to 4 points the previous day.

Wesco’s 8½% senior secured notes due 2024 (Caa3/CCC+) dropped 2½ points, while the company’s 9% senior secured notes due 2026 (Caa3/CCC+) held on to Monday’s gains and picked up another ¼ point.

Team Health Holdings, Inc.’s paper moved further out of the distressed space on Tuesday on the company’s plan to amend and extend the maturity on its term loan B with the company’s ratings seeing positive moves by Moody’s Investors Service, S&P Global Ratings and Fitch Ratings.

Team Health’s 6 3/8% senior notes due 2025 (Caa3/CCC/CCC-) were quoted trading over 2 points better week to date.

Envision Healthcare Corp.’s 8¾% senior notes due 2026 (Ca/CC) softened slightly on Tuesday but were trading 2 3/8 points higher since Friday and nearly 10 points better since the end of January.

Overall market tone was stronger with measured volatility 6.5% lower on the day and stock indices higher.

The junk space was slightly weaker.

The iShares iBoxx High Yield Corporate Bond ETF was off 9 cents at $83.62.

Oil was down nearly $2.

West Texas Intermediate crude oil benchmark futures for March deliveries settled $1.96 lower at $89.36 a barrel.

In China’s distressed property developer space, Logan Group Co. Ltd.’s notes continued to slide on Tuesday after Fitch downgraded the issuer.

Logan’s paper was seen down about 1¾ points to over 8 points during the session after losing about 4 points to 7 points on Monday.

Wesco 9% notes up

Wesco’s 8½% senior secured notes due 2024 (Caa3/CCC+) gave back about 2½ points to head out at 83½ bid in active secondary trading on Tuesday, a source said.

The notes gained 1¼ points on Monday.

Wesco’s 9% senior secured notes due 2026 (Caa3/CCC+) picked up ¼ point during the session to head out at 86 bid.

The notes added 2¼ points in the prior day.

The Fort Worth-based aerospace supplier’s bonds improved about 1¼ points to 4 points on Monday following reports the company, now doing business as Incora after a merger with Pattonair Ltd., hired restructuring advisers.

Team Health better

Team Health’s 6 3/8% senior notes due 2025 (Caa3/CCC/CCC-) traded modestly higher near the 92¾ bid area on Tuesday after gaining over 2 points the previous day, according to a market source.

The notes have improved from a high 80s handle seen in December.

Moody’s said Tuesday that it placed the company’s ratings under review for upgrade on its proposed debt repayment and term loan maturity extension transaction.

S&P said it revised Team Health’s outlook to stable from negative with the company reporting stronger-than-expected 2021 operating results.

Fitch reported it placed the company’s ratings on Ratings Watch Positive.

Team Health is a Knoxville, Tenn.-based medical staffing firm owned by Blackstone Group LP.

Envision improves

In other health care issues, Envision Healthcare’s 8¾% senior notes due 2026 (Ca/CC) were quoted at 61 3/8 bid in light trading over the day, a source said.

The notes rallied 2½ points to 61½ bid in the prior session.

The issue has jumped nearly 10 points since trading at the 52 bid range at the close of January.

Nashville-based Envision is a health care company and hospital-based physician group.

Logan Group declines

Elsewhere, Logan Group’s 5¼% senior notes due 2023 (Ba3/BB-/BB-) traded 8¾ points lower on Tuesday at 72¾ bid, a source said.

The issue was last traded in the secondary market in January at 81½ bid and has softened from the 97½ bid area in December.

Logan’s 4.7% notes due 2026 (Ba3/BB-/BB-) were down over 1¾ points at 63 bid by the close after declining nearly 4 points on Monday.

Fitch said Tuesday that it lowered the ratings on the issuer and its dollar senior notes and subordinated perpetual capital securities due to Logan’s disclosure of a private off-balance sheet debt arrangement not previously stated in its contingent liabilities and audited financial statements.

Fitch said the company has a negative outlook.

In January, S&P placed Logan Group on CreditWatch with negative implications, noting reports of possibly unreported debt guarantees that ranged from $800 million to $1.3 billion.

In 2022, the Shenzhen, China-based property developer has $300 million of 7½% offshore bonds that are due on Aug. 25.

Distressed returns weak

The distressed index was positive over Monday’s session.

The S&P U.S. High Yield Corporate Distressed Bond index’s one-day total return was 0.38% at the start of the week, improved from minus 0.72% on Friday.

Month-to-date total returns rose to 0.29% from minus 0.09% ahead of the weekend.

Year-to-date returns were better at minus 1.24% versus minus 1.61% on Friday.

© 2015 Prospect News.
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