Bankrupt paper active; Revlon, Talen lower; higher defaults eyed; Cooper-Standard flat

By Cristal Cody

Tupelo, Miss., June 16 – Revlon Inc.’s bonds finished slightly lower after experiencing most of their losses in the past week ahead of its Chapter 11 bankruptcy filing announced Thursday.

Revlon’s 6¼% senior notes due 2024 (C/D) were down about ¾ point on the day at 4¾ bid.

The bonds had largely sold off last week from the 25 bid area.

“It dropped like a rock,” a source said. “Revlon is pretty active.”

Nearly $13 million of the company’s bonds changed hands during the session, the source said.

Bankrupt paper was among the active distressed issues seen Thursday, according to market sources.

Bankrupt energy producer Talen Energy Corp.’s 10½% senior notes due 2026 (/D/C) fell 1 point to 63, 64 by the day’s end, a source said.

Meanwhile, the pace of defaults is expected to increase this year after a jump in the U.S. distress ratio, according to S&P Global Ratings.

The global corporate default tally rose by one this past week after a confidential default was added to the tally, S&P said.

In other secondary activity, Cooper-Standard Automotive Inc.’s 5 5/8% senior notes due 2026 (Caa2/CCC-) were unchanged at 48½, 49, a source said.

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