American Airlines notes eyed amid analyst report; Revlon trades down in retail space

By James McCandless

San Antonio, July 28 – The Tuesday session in the distressed debt space saw shifting ground in the travel and retail sectors.

American Airlines Group Inc.’s notes varied in direction as another analyst weighed in on the company’s recovery prospects.

The 5% senior notes due 2022 gave back 2½ points to close at 57¼ bid. The 3¾% senior notes due 2025 jumped up 4¼ points to close at 49¾ bid.

The Fort Worth-based air carrier’s structure was in focus on Tuesday as analysts at Citi released a target price cut for its common stock based on its second-quarter results and weak prospects for the near-term.

In a note, analysts cited the company’s “substantial” debt load and a weak near-term booking curve.

A previous positive analyst note from Raymond James, released Monday, argued that a more balanced risk-reward scenario has emerged after a recent stock sell-off as the company tries to execute a recovery.

In the retail space, Revlon, Inc.’s paper moved down as the company seeks to enact a debt exchange.

The 5¾% senior notes due 2021 fell 3½ points to close at 36½ bid.

After the Monday close, reports indicated that the New York-based cosmetics producer is proposing a debt exchange for the 2021 notes.

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