California Resources jumps as tender amount upped; Avaya pops; Intelsat softens

By Stephanie N. Rotondo

Seattle, Aug. 8 – The distressed debt market was looking at headlines on Monday and moving around positions accordingly.

California Resources Corp., for instance, announced that it had upped the amount of its previously announced cash tender offer to $750 million from $525 million.

In response, the 8% second-lien notes due 2022 were busy – and better – as the company increased the maximum amount of the third priority level cap to $375 million from $200 million.

A trader said the 8% notes traded up 4 to 5 points in response to “just above 60.” The 6% notes due 2024 were also 5 points better, at 47½, he said.

Meanwhile, Avaya Inc. debt was trending upward on reports the telecommunications services provider was looking at the possibility of selling its call center operations.

A trader said the 7% notes due 2019 rose 5 points to 80½.

“Wow, a bunch of trades,” he commented.

Another trader also placed the 7% notes around 80, calling that up “about 5 points.” The 9% notes due 2019 were “a touch higher.”

Aside from news-driven names, Intelsat SA paper continued to trade busily. However, the name’s recent run-up was stemmed as profit takers were coming in, according to a trader.

Another trader called the 7½% notes due 2019 nearly 2 points weaker at 78¾, while the 7¼% notes due 2020 dropped 2 points to 74½.

The 7¾% notes due 2021 were seen slipping half a point to 28¼.

© 2015 Prospect News.
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