Diebold Nixdorf, Carvana notes mixed; Transocean declines; Talen, Diamond Sports higher

By Cristal Cody

Tupelo, Miss., May 2 – Diebold Nixdorf Inc.’s senior notes recovered over 3½ points on Monday after the company’s paper sank 10½ points on Friday and ended April about 30 points lower.

Carvana Co.’s paper was carrying yields over 10% and among the most active junk issues seen in the secondary market on Monday, a source said.

The online car retailer’s 4 7/8% senior notes due 2029 (Caa2/CCC) were flat at 72¾ bid on $14 million of volume.

Carvana’s new issue, 10¼% notes due 2030 (Caa2/CCC) that priced Wednesday at par, were trading at 97 5/8 bid on Monday on heavy supply of $51 million.

Market tone was slightly better as May kicked off with stocks up, crude oil unchanged to better and volatility lower on the day as focus shifts to the Federal Reserve’s monetary policy decision due Wednesday.

The iShares iBoxx High Yield Corporate Bond ETF fell 1 cent to $78.21 after declining 98 cents on Friday.

West Texas Intermediate crude oil benchmark futures for November deliveries settled 48 cents higher at $105.17 a barrel.

The Chicago Board Options Exchange’s CBOE Volatility index was down 3.17% by the close at 32.34.

Distressed energy paper was not seen trading heavily on Monday, and overall distressed volume stayed light over the day, according to market sources.

Transocean Inc.’s notes were thinly traded with the offshore driller’s 8% debentures due 2027 (Ca/CCC+) quoted over 1 point weaker at 78 bid.

Talen Energy Supply LLC’s 10½% senior notes due 2026 improved about ¼ point in light secondary supply.

Also in the distressed market, Diamond Sports Group LLC’s 6 5/8% senior notes due 2027 gained 1 point with the paper trading in the low 20s bid range.

Diebold Nixdorf mixed

Diebold Nixdorf’s 8½% notes due 2024 (Caa1/CCC) traded as high as the 71 bid area before heading out at 68 bid, up 2 points from Friday, a source said.

The bonds went into the weekend down 10½ points on Friday.

Trading was light on Monday with $2 million of volume reported.

Diebold Nixdorf’s 9 3/8% senior secured notes due 2025 (B2/B-) softened about ¾ point to 88 bid in thin secondary action during the session.

The secured notes were off 2½ points on Friday and finished April at 88¾ bid, down from the 102½ bid area at the start of the month.

The Hudson, Ohio-based financial technology company is scheduled to post its first-quarter earnings results on May 10.

Talen Energy edges up

Talen’s 10½% senior notes due 2026 (Caa2/CCC/CCC) improved about ¼ point to 37¼ bid in light volume on Monday, a source said.

The bonds recovered over 10 points in April after starting the month at 23¾ bid.

Talen’s paper, along with its credit default swap spreads, have been soft as restructuring talks circulate.

The Woodlands, Tex., and Allentown, Pa.-based power generation and infrastructure company’s CDS spreads widened 1,027 bps in the past week ended Wednesday to 6,367 bps, a market source said.

Diamond Sports mixed

Diamond Sports’ 6 5/8% senior notes due 2027 (Ca/CC) rose 1 point to 21 bid on $2 million of paper traded on Monday, a source reported.

The company’s paper was mixed with the 5 3/8% senior secured notes due 2026 (Caa1/CCC) quoted down about 1½ points at 35 bid in thin secondary action.

The Chesapeake, Va.-based sports broadcast group closed on a distressed debt exchange in March that included exchanging 5 3/8% senior secured notes due 2026 for its 5 3/8% second-lien notes.

Distressed April returns

S&P U.S. High Yield Corporate Distressed Bond index returns remained soft on Friday and finished the month weak.

One-day total returns were minus 0.22% on Friday, minus 0.44% on Thursday, minus 0.22% on Wednesday, 0.14% on Tuesday and minus 0.52% at the week’s start.

Month-to-date total returns ended at minus 2.72% for April.

Year-to-date index returns declined Friday to minus 7.89%, compared to minus 7.69% on Thursday, minus 7.28% on Wednesday, minus 7.07% on Tuesday and minus 7.21% in the April 25 session.

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