Hertz notes jump on positive economic outlook; PG&E trades lower in utilities space

By James McCandless

San Antonio, June 5 – On the last day of the week in the distressed debt market, the focus was placed on travel-related names.

Hertz Global Holdings, Inc.’s notes jumped up, largely carried by positive market sentiment about an economic recovery.

The 6¼% senior notes due 2022 improved by 12¼ points to close at 34¾ bid. The 5½% senior notes due 2024 added 12¾ points to close at 34¾ bid.

Both tranches combined saw a about $40 million change hands.

The Estero, Fla.-based car rental company’s structure was lifted by a combination of the market’s positive outlook on an economic recovery and new economic data.

As travel companies look to expand operations as government restrictions on the coronavirus are lifted, the market has become bearish on the sector.

“This is a correction, which is natural, but it looks like people are over-correcting,” a trader said. “Hertz went bankrupt like two weeks ago.”

Meanwhile, PG&E Corp.’s issues shifted lower amid news that the company is preparing a debt financing package for its bankruptcy exit.

The 6.05% notes due 2034 shaved off ¼ point to close at 118 bid.

During the Friday session, news broke that the San Francisco-based electric utility is preparing a debt-financing package expected to pricing next week as it heads toward exiting bankruptcy.

© 2015 Prospect News.
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