Frontier rises after bankruptcy filing; J.C. Penney lower as interest payment skipped

By James McCandless

San Antonio, April 15 – In the middle of the week, the distressed debt market continued to place its attention on shifting ground in the telecom and retail sectors.

Frontier Communications Corp.’s notes rose after the company filed for Chapter 11 bankruptcy to enact a restructuring agreement with creditors.

The 10½% senior notes due 2022 gained 1¼ points to close at 31¼ bid. The 11% senior notes due 2025 picked up 1¼ points to close at 31¼ bid.

Late Tuesday, the Norwalk, Conn.-based wireline communications company filed for Chapter 11 bankruptcy, Prospect News reported.

In a news release, the company said that it has entered into a restructuring support agreement with bondholders representing more than 75% of its $11 billion in outstanding unsecured bonds.

Sector peer Intelsat SA’s issues moved to higher ground after a subsidiary announced that it would withhold an interest payment.

Intelsat Jackson Holdings SA’s 8½% senior notes due 2024 added ½ point to close at 59¼ bid. The 5½% senior notes due 2023 garnered ¾ point to close at 57½ bid.

In the retail space, J.C. Penney Co., Inc.’s paper ended lower after the company also elected to forego an interest payment.

The 5 7/8% senior notes due 2023 gave up 3¾ points to close at 46½ bid.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.