Hertz notes lower after analyst input; Chesapeake trades lower amid bankruptcy talk

By James McCandless

San Antonio, June 9 – Weakness in travel and energy names was the main focus of the distressed debt market on Tuesday.

Hertz Global Holdings, Inc.’s notes moved lower after analysts warned against investing in the name’s common stock after bankruptcy.

The 6¼% senior notes due 2022 lost 2¼ points to close at 37¾ bid. The 5½% senior notes due 2024 dipped 1 point to close at 39½ bid.

The 6¼% notes saw about $26 million trading.

During the Tuesday session, analysts at Deutsche Bank and Barclays both warned against investing in the Estero, Fla.-based car rental company’s common stock.

Both analysts said that despite positive outlooks on the travel industry and the economic recovery as a whole, traders should be wary of putting their money in the bankrupt name.

At the time of its filing, Hertz reported $14 billion in vehicle debt and $6 billion in corporate debt.

Meanwhile, in oil and gas, Chesapeake Energy Corp.’s issues were pushed down amid talk of an upcoming bankruptcy filing.

The 11½% notes due 2025 fell 3¼ points to close at 5¼ bid. The 5 3/8% senior notes due 2021 shed 1¼ points to close at 2¾ bid.

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