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WeWork notes weaken as financial rescue deal reached; Rite Aid active amid upgrade
By James McCandless
San Antonio, Oct. 22 – Distressed debt trading focus on a handful of newsmakers on Tuesday, including WeWork Cos. Inc., which saw its notes decline after news broke that the company will be taken over by large backer SoftBank as part of a rescue deal.
The 7 7/8% senior notes due 2025 lost 1¼ points to close at 84¾ bid.
On Tuesday, news broke that the New York-based coworking company will accept a rescue package from its largest investor, SoftBank, which values the company at $8 billion.
As part of the package, former chief executive officer Adam Neumann will receive a $185 million consulting fee and sell about $1 billion of stock.
In the retail space, Rite Aid Corp. saw some of its paper trade higher and other paper remain flat after the company received a ratings upgrade on Tuesday but remained firmly in distressed territory.
The 6 1/8% senior notes due 2023 held level at 85 bid. The 7.7% senior debentures due 2027 added 2 points to close at 64½ bid.
The Camp Hill, Pa.-based drug store chain received an upgrade from S&P Global Ratings during the Tuesday session.
The agency raised its issuer credit rating to CCC+ from SD though retained its recent ratings shift downward on its 2027 and 2028 notes to D.
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