Hertz notes eyed amid report adviser hired; L Brands active as sale of unit cancelled

By James McCandless

San Antonio, May 4 – Shifting ground in the retail space marked the start of the week in the distressed debt market.

Hertz Global Holdings, Inc.’s notes varied in direction amid reports that it has hired an additional restructuring adviser.

The 6¼% senior notes due 2024 crashed 12 points to close at 9½ bid. The 5½% senior notes due 2024 added ½ point to close at 15 bid.

Near the end of Monday trading, news broke that the Estero, Fla.-based car rental company has hired an additional restructuring adviser as it mulls the prospect of bankruptcy.

The company has tapped FTI Consulting to advise on streamlining operations as it prepares to tackle its $17 billion debt load.

Last month, the company had hired Moelis & Co. as restructuring adviser.

Meanwhile, in retail, L Brands, Inc.’s issues diverged before late news that its Victoria’s Secret asset sale has been cancelled.

The 6¾% senior notes due 2036 were docked 1 point to close at 73 bid. The 5¼% senior notes due 2028 held level at 73¼ bid.

The Columbus, Ohio-based retailer’s structure was active throughout the day, leading up to late news that the company and private equity firm Sycamore Partners agreed to terminate a $525 million asset sale.

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