Distressed retail mixed; Kohl’s flat; Staples lower, CDS spreads firm; Plains, CHS up

By Cristal Cody

Tupelo, Miss., Sept. 15 – Retail paper continues to be in the cross-hairs of the distressed market with some retailers improving this week and others moving out, along with their credit default swap spreads, sources reported Thursday.

Kohl’s Corp.’s 5.55% senior notes due 2045 (Baa2/BBB-) were down about ½ point on the week, while the retailer’s CDS spreads eased more than 30 basis points this week.

The notes traded mostly unchanged in the 69½ bid range in light activity on Thursday, a source said.

Staples, Inc.’s 10¾% senior notes due 2027 (Caa2/CCC+) dropped 1½ points on Thursday to the 77½ bid area, a source said.

The office retailer’s CDS spreads, meanwhile, tightened nearly 150 bps this week.

Plains All American Pipeline, LP’s 6 1/8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Ba2/BB/BB) were active on Thursday and trading nearly ¾ point better on the day.

The issue went out at 83½ bid on $4 million of volume, a source said.

In other distressed issues, Community Health Systems Inc.’s paper traded ¾ point to 1 point higher on Thursday.

CHS/Community Health Systems, Inc.’s 6 7/8% senior secured notes due 2029 (Caa2/CCC) rose ¾ point to 64½ bid on $6 million of secondary activity, a source said.

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