Washington Prime bonds gain; Intelsat quiet; Transocean rallies; Peabody edges higher

By Cristal Cody

Tupelo, Miss., June 15 – Washington Prime Group, LP’s bonds saw additional gains on Tuesday in the distressed secondary market following the company’s Chapter 11 bankruptcy filing and downgrade by Fitch Ratings.

The issuer’s 6.45% notes due 2024 (C/D/CC) traded at the close up 2 points at 75 bid, a source said.

Intelsat Jackson Holdings SA’s distressed bonds were quiet following the company’s report of an April net loss and the continuation of the parent company’s bankruptcy hearing, a source said.

The 5½% senior notes due 2023 were last seen in the same session a week ago trading at the 58 bid area.

In distressed energy issues, Transocean Inc.’s bonds gained about 2 to 3 points over the day, a source said.

Transocean’s 7½% senior notes due 2026 (Ca/CCC) improved more than 2 points to 85 1/8 bid.

Peabody Energy Corp.’s 6 3/8% notes due 2025 (Caa1/CCC) rose to 75½ bid from 75 3/8 bid in light secondary trading during the session, a source said.

Defaults among energy issuers are expected to fall to 7½% by the end of June and decline to around 5% by July before falling to a 2% year-end forecast, according to a Fitch Ratings report.

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