Revlon up on debt talks; Endo paper mostly soft ahead of board fight; secondary thin

By Cristal Cody

Tupelo, Miss., June 6 – Revlon Inc.’s bonds were on a run higher on Monday after news reports the company is in talks to extend debt maturities.

Revlon was “up 5 points,” a source said. “They’re going to try and save it again, for the 15th time.”

The cosmetics manufacturer staved off filing for bankruptcy in 2020.

Overall secondary action in the junk and distressed spaces was quieter over the session with stocks edging higher and measured volatility slightly up, sources said.

“Pretty quiet Monday,” one source said.

The iShares iBoxx High Yield Corporate Bond ETF was off 59 cents at $78.05.

Looking at other distressed paper, Endo International plc’s notes traded flat to slightly weaker on Monday in mostly light secondary action as the pharmaceutical manufacturer fights a proxy battle for a board position.

Revlon notes gain

Revlon Consumer Products Corp.’s 6¼% senior notes due 2024 (C/C) climbed to 25 bid on Monday, up from 20 bid, 21 offered on Friday, a source said.

The issue had declined to the 17 bid range in mid-May from the 30 bid to 40 bid range seen in March and April.

In May, Revlon reported first-quarter earnings and revenue were up from a year ago.

The New York-based cosmetics manufacturer’s stock rose nearly 4½% to $4.72 on Monday, still off its 52-week high of $17.65.

Endo mostly weak

Endo Finance LLC’s 6% senior notes due 2028 (Caa3/CC) went out ¼ point lower on Monday at 6¼ bid, according to market sources.

The bonds fell ½ point to 6½ bid on Friday.

The issue finished May at the 7 bid area, down from where it ended April at 44 bid.

Endo subsidiary Par Pharmaceutical Inc.’s 7½% senior secured notes due 2027 (B3/CCC) were quoted “pretty much unchanged” at 76¾ bid, 77¾ offered on Monday, a source said.

The secured notes have declined from the 91 bid range a month ago.

Endo’s bonds sank in May after the company reported a first-quarter loss and forecasted a second-quarter loss.

Meanwhile, Endo is defending one of its board positions up for vote at the annual shareholders meeting on Thursday.

The company said in a regulatory filing with the Securities and Exchange Commission on Friday that it strongly disagrees with proxy advisory firm Glass Lewis & Co., LLC’s recommendations made in May to vote against re-electing Nancy J. Hutson, Ph.D. to the board.

Endo said the firm’s recommendation is based on a “misguided view” that Hutson should be held accountable for allegations against Endo over the promotion, sale and distribution of opioid medications.

The Dublin-based pharmaceutical company has settled several opioid-related lawsuits in 2022.

Distressed index soft

S&P U.S. High Yield Corporate Distressed Bond index returns were soft on Friday but remained positive so far in June.

One-day total returns were minus 0.15%, while month-to-date total returns totaled 0.21% through Friday’s session.

Year-to-date index returns on Friday were at minus 14.33%.

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