Talen paper down, CDS spreads widen; TPC improves; PBF edges up; Transocean mixed

By Cristal Cody

Tupelo, Miss., March 28 – Talen Energy Supply LLC’s notes fell about 1 5/8 points to 2¼ points on Monday, while its credit default swap spreads moved out nearly 3,000 basis points in the past week.

Talen’s 10½% senior notes due 2026 (Caa2/CCC/CCC) were 1 5/8 points weaker at 30 1/8 bid, a source said. Volume totaled $12 million.

Talen’s 6½% senior notes due 2025 (Caa2/CCC/CCC) also were active with $9 million of secondary supply. The issue opened ½ point lower and continued to soften through the afternoon, going out 2¼ points weaker at 28¾ bid.

Talen’s CDS spreads increased over 2,900 bps to 10,691 bps for the week ended March 23.

Talen’s bonds and TPC Group Inc.’s paper saw some of the heaviest trading action on Monday in the distressed market, a source said.

TPC Group’s 10½% senior secured notes due 2024 (Caa3/D/C) rose 5/8 point to 41 3/8 bid on $11 million of paper traded.

Distressed energy bonds were mixed as oil prices pulled back.

PBF Energy Inc.’s senior notes traded about ¼ point to ½ point better as the week kicked off, a source said.

Transocean Inc.’s paper was mixed with the 7½% senior notes due 2031 (Ca/CCC) down over 1¼ points to the 70¼ bid area by the end of the day.

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