Diebold Nixdorf notes sink; Carvana lower; Talen Energy paper flat, CDS spreads widen

By Cristal Cody

Tupelo, Miss., April 29 – Diebold Nixdorf Inc.’s senior notes plunged 10½ points on Friday with the paper ending April about 30 points lower.

The company’s secured notes fell 2½ points over the day and were closing the month more than 10 points weaker.

Risk-off tone permeated through the day with stock indices over 2% lower and the Fear Factor index over 10% higher.

The iShares iBoxx High Yield Corporate Bond ETF fell 98 cents to $78.53.

The Chicago Board Options Exchange’s CBOE Volatility index rose 11.37% to 33.40.

Carvana Co.’s paper remained weak in steady trading on Friday following the company’s new issue on Wednesday.

The online car retailer’s 4 7/8% senior notes due 2029 (Caa2/CCC+) were down 2 3/8 points at 73 3/8 bid on $7 million of secondary supply, a source said.

The notes dropped 1 point on Thursday.

Talen Energy Supply LLC’s senior notes were mostly unchanged, though its credit default swap spreads moved out over 1,000 basis points for the past week.

Rite Aid Corp.’s notes stayed soft on Friday in thin trading, while its CDS spreads also softened this week.

Diebold Nixdorf drops

Diebold Nixdorf’s 8½% notes due 2024 (Caa1/CCC) sank 10½ points to 66 bid and yielding over 33% in Friday’s session, a source said.

Secondary volume totaled $14 million.

The notes shed 3¾ points in Thursday’s session on lighter supply totaling $4 million.

The issue is down about 30 points since the start of April.

Diebold Nixdorf’s 9 3/8% senior secured notes due 2025 (B2/B-) also were quoted 2½ points weaker at 88¾ bid and yielding over 14% on $10 million of secondary supply.

The secured notes were down 1½ points on Thursday on $3 million of trading volume and have dropped from the 102½ bid area at the start of the month.

The Hudson, Ohio-based financial technology company is scheduled to post its first-quarter earnings results before the market opens on May 10.

Talen Energy unchanged

Talen’s paper stayed mostly flat on the week, though its CDS spreads weakened, according to market sources.

Talen’s 6½% senior notes due 2025 (C/CC/CCC) were trading Friday mostly unchanged on the day and week at the 37 bid range.

The paper had sunk to the low 20s in March following reports the company is in restructuring talks.

Talen’s CDS spreads were 1,027 bps wider in the past week ended Wednesday at 6,367 bps.

The Woodlands, Tex., and Allentown, Pa.-based power generation and infrastructure company’s CDS spreads had widened to as high as 15,906 bps over the March 30 weekly period.

Rite Aid down

Rite Aid’s bonds declined in thin trading on Friday, while its CDS spreads weakened also, sources said.

The company’s 7½% senior secured notes due 2025 (B3/CCC/BB-) edged down 3/8 point to 86 bid, over 1 point lower on the week.

Rite Aid’s 8% senior secured notes due 2026 (B3/CCC/BB-) were off about ¾ point at a print of 84.045 by the close.

The notes were about 1¾ points lower on the week.

Rite Aid’s CDS spreads also were 168 bps wider over the past week ended Wednesday at 2,021 bps.

The Camp Hill, Pa.-based drugstore company reported heavy fourth-quarter losses earlier in April.

Distressed returns soft

S&P U.S. High Yield Corporate Distressed Bond index returns remained weak on Thursday.

One-day total returns were minus 0.44%, compared to minus 0.22% on Wednesday, 0.14% on Tuesday and minus 0.52% on Monday.

Month-to-date total returns were at minus 2.5% on Thursday, minus 2.07% on Wednesday, minus 1.85% on Tuesday and minus 2% at the week’s start.

Year-to-date index returns softened to minus 7.69% from minus 7.28% on Wednesday, minus 7.07% on Tuesday and minus 7.21% on Monday.

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