Diamond Sports bonds slump; Talen mixed; Telesat Canada notes under pressure; TPC up

By Cristal Cody

Tupelo, Miss., Nov. 23 – Diamond Sports Group LLC’s bonds strayed further into the distressed secondary space on Tuesday.

“In distressed, DSport was probably the most active name,” a market source said. “A decent amount traded.”

The company’s secured paper dropped 1 3/8 points on $14 million of volume.

Market tone was mixed during the session.

The iShares iBoxx High Yield Corporate Bond ETF softened 12 cents to $86.11.

“It was pretty quiet,” a source said. “The market held in. Things were a little soft despite oil being stronger and stocks up. Higher grade and high yield were down ½ point.”

Oil prices revved up on Tuesday.

January Brent crude futures were up $2.61.

West Texas Intermediate crude oil benchmark futures for January deliveries rose $1.75 to settle at $78.50 a barrel.

President Joe Biden announced on Tuesday that the Department of Energy will release 50 million barrels of oil from the Strategic Petroleum Reserve to lower gas prices for Americans, a move coordinated with other countries including China, India, Japan, Republic of Korea and the United Kingdom.

Talen Energy Supply LLC’s bonds were mixed on Tuesday after diving about 5½ points to 9 points on Monday.

In other secondary trading, Telesat Canada LLC’s notes were under pressure after the company’s merger closing announcement on Friday.

TPC Group Inc.’s 10½% senior secured notes due 2024 (Caa2/CCC-/B-) improved 2¼ points in thin supply on Tuesday after gaining 1½ points in the prior session.

Diamond Sports down

Diamond Sports’ paper softened further on Tuesday, market sources said.

The company’s 5 3/8% senior secured notes due 2026 (Caa1/CCC) dropped 1 3/8 points to 46¾ bid on $14 million of volume.

The Chesapeake, Va.-based sports broadcast group’s 6 5/8% senior notes due 2027 (Ca/CC) fell ¾ point to 22½ bid by the close on Tuesday.

Diamond Sports’ notes shed over 8 points in the prior week.

Parent Sinclair Broadcast Group Inc. has been in negotiations with lenders and noteholders to restructure Diamond Sports’ debt.

Talen mostly lower

Talen Energy’s notes were mixed after slipping about 5½ points to 9 points on Monday, sources said.

The company’s 6½% senior notes due 2025 (Caa1/CCC/B-) traded by the close at 53 bid, down 2½ points on $1 million of secondary supply.

Talen’s 7¼% senior secured notes due 2027 (Ba3/B+/B+) were quoted off about ½ point at 92 bid.

Meanwhile, Talen’s 10½% senior notes due 2026 (Caa1/CCC/B-) jumped 4 points to 59¾ bid on $3.5 million of volume.

The Woodlands, Tex., and Allentown, Pa.-based power company will hold its third-quarter conference call on Dec. 2.

Telesat declines

In other activity on Tuesday, Telesat Canada’s 6½% senior notes due 2027 (Caa1/B) declined over 2½ points to under 81½ bid, a source said.

Trading volume totaled $6.6 million.

Ottawa-based satellite communications company Telesat Corp. announced on Friday that Telesat Canada and Loral Space & Communications Inc. completed a merger with the companies now subsidiaries of the public holding company formed in connection with the transaction.

Telesat said Friday it will begin trading on the Nasdaq and Toronto Stock Exchange under the ticker TSAT.

TPC higher

TPC Group’s 10½% senior secured notes due 2024 (Caa2/CCC-/B-) picked up 2¼ points in thin supply on Tuesday to head out at 73¼ bid, a market source said.

The notes ended Monday 1½ points better.

The Houston-based chemical manufacturer’s issue traded at the 91 bid range at the start of the month.

Distressed index lower

Distressed index returns declined as the week kicked off on Monday.

The S&P U.S. High Yield Corporate Distressed Bond index’s one-day total return softened to minus 0.59% from minus 0.45% on Friday.

Month-to-date total returns slid to minus 3.38% from minus 2.81% ahead of the weekend.

Year-to-date total returns were down at 24.66% compared to 25.41% on Friday.

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