Diamond Offshore drops after bankruptcy news; Hertz notes rise on renewed optimism

By James McCandless

San Antonio, April 27 – The distressed debt market focused on sectors significantly weakened by the pandemic, namely energy and retail, on Monday.

Diamond Offshore Drilling, Inc.’s notes dropped after the company became the latest energy name to file for bankruptcy.

The 4 7/8% senior notes due 2043 lost 3½ points to close at 9 bid. The 7 7/8% senior notes due 2025 shed 3 points to close at 9¾ bid.

On Sunday, the Houston-based offshore contract driller announced that it would file for Chapter 11 bankruptcy to restructure and strengthen its balance sheet and achieve a more sustainable debt profile, Prospect News reported.

In its filing with the Securities and Exchange Commission, the company listed about $2.6 billion in debt.

Meanwhile, Hertz Global Holdings, Inc.’s notes rose on market optimism surrounding potentially loosened Covid-19 restrictions.

The 6¼% senior notes due 2022 added 3 points to close at 28½ bid. The 5½ senior notes due 2024 improved by 1½ points to close at 24 bid.

The Estero, Fla.-based car rental company’s structure was swept up in a wave of market optimism as the federal government and states start to talk about reopening businesses and reducing restrictions after lengthy stay-at-home orders meant to curb the spread of the coronavirus.

© 2015 Prospect News.
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