Revlon moves out of single digits; Endo bonds mixed; Lowe’s paper trades with 80s handle

By Cristal Cody

Tupelo, Miss., June 21 – Revlon Inc.’s notes moved out of the single digits, climbing 4 points on Tuesday, following the company’s Chapter 11 bankruptcy filing last week.

Endo International plc’s paper caught the bulk of attention in the distressed space during the session with the notes unchanged to about 5/8 point lower.

The financial markets mostly perked up in the first session back after the long holiday weekend.

The S&P 500 index closed 2.45% higher.

The junk space was a touch weaker with the iShares iBoxx High Yield Corporate Bond ETF down 0.07% to $74.

Oil was on the mend after sinking on Friday.

West Texas Intermediate crude oil benchmark futures for July deliveries, which settled Friday $8.03 lower, rose $1.09 on Tuesday to $110.65 a barrel.

Meanwhile, high-grade notes remained under pressure, sources said.

Three of the top 10 most active investment-grade bonds on Trace headed into the holiday weekend were trading well below par and continued to soften on Tuesday, sources said.

That includes paper priced in 2022.

Lowe’s Cos. Inc.’s 4.25% notes due 2052 (Baa1/BBB+) brought to the market in March were down nearly 1 point at the 85 bid area and a 5¼% yield on Tuesday after shedding about 1 point on Friday, a source said.

Lowe’s sold $1.5 billion of the notes as part of a $5 billion four-tranche offering on March 22 at 99.932 to yield 4.254%.

On Friday, market sources reported numerous high-grade issuers with bond handles in the 60s and 70s range.

AT&T Inc.’s 3.65% notes due 2059 (Baa2/BBB/BBB+) traded Tuesday in the 73¼ to 73¾ bid area and yielding 5.296% by the close, down about ½ point from Friday, a source said.

Roper Technologies Inc.’s 2% notes due 2030 (Baa2/BBB+) were down more than ¼ point with a handle below 80 bid and yielding 5.07% by the close, a source said.

Revlon notes up

Revlon Consumer Products Corp.’s 6¼% senior notes due 2024 (C/D) climbed 4 points over Tuesday’s session, going out the door at 10¼ bid, a source said.

Volume was steady on $3 million of issues traded.

The notes held onto Friday’s 1½-point gain on $2 million of secondary volume.

The New York-based cosmetics manufacturer reported that it filed for Chapter 11 on Wednesday in the U.S. Bankruptcy Court for the Southern District of New York.

Endo flat to lower

Endo subsidiary Par Pharmaceutical Inc.’s 7½% senior secured notes due 2027 (Caa2/CCC) went out flat at 74½ bid on $11 million of secondary volume on Tuesday, a source reported.

The bonds traded Friday ½ point better on $12 million of supply.

Endo Luxembourg Finance Co. Sarl’s 6 1/8% senior secured first-lien notes due 2029 (Caa2/CCC) shed 5/8 point to head out at 73¼ bid on $9 million of trading action.

The Dublin-based pharmaceuticals manufacturer’s bonds have been under pressure since May after the company reported a first-quarter loss and forecasted a second-quarter loss.

Distressed index soft

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

One-day total returns were 0.16% on Friday, versus minus 1.49% on Thursday, 0.69% on Wednesday, minus 0.51% on Tuesday and minus 2.37% at the start of the week.

Month-to-date total returns were minus 4.83% on Friday, compared to minus 4.98% on Thursday, minus 3.54% on Wednesday, minus 4.2% on Tuesday and minus 3.71% at the week’s start.

Year-to-date index returns were minus 18.64% on Friday, minus 18.77% on Thursday, minus 17.54% midweek, minus 18.11% on Tuesday and minus 17.69% in the June 13 session.

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