U.S. Steel notes strengthen after asset sale announced; American Airlines in focus

By James McCandless

San Antonio, Dec. 24 – Manufacturing and travel names garnered the distressed debt market’s attention for the half-day.

United States Steel Corp.’s notes gained some ground after announcing the sale of a non-core real estate asset.

The 6 7/8% senior notes due 2025 reached up 2 points to close at 96¼ bid. The 6¼% senior notes due 2026 gained ½ point to close at 92 bid.

After the close on Wednesday, the Pittsburgh-based steel manufacturer announced that it had sold a Pennsylvania real estate asset.

The company sold its Keystone Industrial Port Complex to NP Falls Township Industrial, LLC for $160 million in cash.

In a statement, president and chief executive officer David Burritt said that the sale “delivers on our strategic commitment to extract incremental value from our attractive portfolio of real estate assets.”

Meanwhile, in the travel space, American Airlines Group Inc.’s issues varied as the coronavirus stimulus bill remains unsigned.

The 3¾% senior notes due 2025 tacked on 1¼ points to close at 75¾ bid. The 11¾% senior notes due 2025 lost 1¾ points to close at 111¾ bid.

The Fort Worth-based air carrier’s tranches continued to see high activity on an otherwise thin trading day as the fate of the coronavirus stimulus bill remains uncertain.

© 2015 Prospect News.
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