Hertz notes improve as large equity investor exits; Occidental jumps as investors sue

By James McCandless

San Antonio, May 28 – The Thursday session in the distressed debt space saw a continued focus on travel-related names.

Hertz Global Holdings, Inc.’s notes moved up amid news that large equity investor Carl Icahn sold his entire stake in the company.

The 6¼% senior notes due 2022 rose 1¼ points to close at 17¾ bid. The 5½% senior notes due 2024 improved by ¾ point to close at 17½ bid.

The Estero, Fla.-based car rental company’s notes saw modest rises despite negative headlines springing up after the Wednesday close and continuing into Thursday.

In oil and gas, Occidental Petroleum Corp.’s issues jumped up after news broke that shareholders and creditors had filed a lawsuit against the name.

The 2.9% senior notes due 2024 added ¾ point to close at 79½ bid. The 2.7% senior notes due 2022 moved up 1 point to close at 92 bid.

On Wednesday afternoon, reports indicated that a group of the Houston-based independent oil and gas producer’s stockholders and creditors has filed a lawsuit against the name.

The group alleges that it has suffered billions of dollars in losses because the company did not disclose its inability to handle negative shifts in the commodities market after acquiring Anadarko Petroleum.

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