Diebold Nixdorf notes up in distressed trade; Transocean bonds higher; Bausch softens

By Cristal Cody

Tupelo, Miss., Aug. 2 – Some distressed names popped in the secondary space on Tuesday with the paper moving higher over the session.

Diebold Nixdorf Inc.’s notes traded more than 3 points to 6½ points better after the company reported a wide second-quarter loss.

Transocean Inc.’s paper climbed about 1¾ points to over 9 points after going out Monday about 2½ points to over 5 points better after the offshore driller reported stronger second-quarter revenue and lower losses, as well as $1.24 billion of new drilling contracts.

The West Texas Intermediate crude oil benchmark futures for September delivery improved 53 cents to settle Tuesday at $94.42 a barrel after dropping $4.73 on Monday.

Stock indices were lower as Monday’s weak tone continued into the session. The Dow Jones industrial average declined 1.23%.

The iShares iBoxx High Yield Corporate Bond ETF softened 37 cents, or 0.47%, to $77.54.

Market volatility also remain up in the month’s second session.

The CBOE Volatility index, which rose 7.08% on Monday, headed out Tuesday 4.86% higher at 23.95.

In other distressed names, TPC Group Inc.’s notes have been quiet in the secondary market so far in August as the bankrupt company received final court approval for a $523 million debtor-in-possession facility.

Bausch Health Cos. Inc.’s bonds remained weak on Tuesday and were seen down about 1¼ points to 3½ points after softening Monday.

Diebold Nixdorf rallies

Diebold Nixdorf’s notes gained in fairly busy trading action by the afternoon after the ATM manufacturer on Tuesday announced a wide second-quarter loss, a market source said.

The company’s 8½% senior notes due 2024 (Ca/CCC-) climbed 6½ points to 54½ bid.

The notes ended July about 2½ points lower on the month.

Diebold Nixdorf’s 9 3/8% senior secured notes due 2025 (Caa2/CCC+) also improved 3 1/8 points to 81 5/8 bid by the close.

The secured paper closed out July about 6½ points weaker.

The Hudson, Ohio-based financial and retail technology company on Tuesday reported second-quarter losses of $199.1 million, or $2.52 a share, wider than losses of $30.3 million, or 39 cents a share, in the same period a year ago.

Transocean moves up

Transocean’s paper moved about 1¾ points to more than 9 points higher on Tuesday after climbing about 2½ points to over 5 points in Monday’s session, a source reported.

Transocean’s 7½% senior notes due 2026 (Ca/CCC) were quoted at 78¾ bid, up more than 9¾ points on $11 million of secondary supply.

The issue added 3½ points on Monday.

Transocean’s 6.8% senior notes due 2038 (C/CCC-) traded up 5¼ points to 56¾ bid following Monday’s bump higher of 5½ points.

The issue saw $4 million of volume.

The Vernier, Switzerland-based offshore driller’s 8% debentures due 2027 (C/CCC-) also jumped 6¼ points to 76 bid on Tuesday on $7 million of notes changing hands. The notes went out Monday 2¾ points higher.

TPC paper quiet

TPC’s 10½% senior secured notes due 2024 (/D/C) were last seen Thursday at 54 bid, about 1 point lower on the month, a source said.

The notes traded at the 73 bid area at the start of the year.

The Houston-based chemical manufacturer filed for Chapter 11 bankruptcy in June following a missed interest payment on its secured debt earlier in the year.

Bausch pressured

Bausch Health’s notes remained under pressure in steady trading action on Tuesday following a downgrade from S&P Global Ratings in the prior session, a source said.

Bausch’s 4 7/8% senior secured notes due 2028 (B2/B/BB) fell 1¼ points to 75 bid by the day’s end following Monday’s decline of 3¼ points.

The Laval, Quebec-based pharmaceutical company’s 5% senior notes due 2028 (Caa2/CCC/B) dropped 2 1/8 points to 50 bid by the day’s end on $6 million of paper traded.

The notes went out Monday down 1 5/8 points.

Bausch will release second-quarter results on Aug. 9.

Distressed returns

S&P U.S. High Yield Corporate Distressed Bond index total returns stayed positive at the start of August.

One-day returns were 0.19% on Monday, compared to 0.92% on Friday and 0.29% in the same session a week ago.

Quarter-to-date returns were 2.72% on Monday.

Year-to-date total returns improved at the start of the week to minus 20.52% from minus 20.67% on Friday and minus 21% in the week-ago session.

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