Washington Prime better; Diamond Sports, Frontier, Hertz, Exela, AMC up; Transocean slips

By Cristal Cody

Tupelo, Miss., March 9 – Washington Prime Group, LP’s 6.45% notes due 2024 (C/C/C) improved in heavy trading on Tuesday but remained weak as the company nears the 30-day default deadline on a missed interest payment.

The 6.45% notes due 2024 (C/C/C) were last seen up nearly ¾ point at 55¼ bid on more than $16.75 million of trading volume, a source said.

The notes have softened from where the issue traded in the 73½ bid range on Feb. 12 before Washington Prime Group, Inc. announced in an 8-K filing with the Securities and Exchange Commission that the operating partnership withheld a $23.2 million interest payment on the notes that was due Feb. 15.

If the payment issue is not resolved within 30 days, the missed payment constitutes a default.

Washington Prime said in the filing that if an event of default occurs, the trustee or the holders of at least 25% of the notes could accelerate the outstanding debt due under the notes, making such debt due and payable, and would result in a cross-default with some of the limited partnership’s or the company’s other debt.

The Columbus, Ohio-based shopping center real estate investment trust’s stock has fallen from $12.06 before the announcement to trading Tuesday at $3.39 a share.

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