Frontier Communications declines as interest payment skipped; Whiting notes active

By James McCandless

San Antonio, March 16 – The distressed debt space started the week under pressure as the economic impact of the coronavirus was laid bare on Monday.

Frontier Communications Corp.’s notes declined after the company announced that it would be forgoing an interest payment.

The 10½% senior notes due 2022 lost 3 points to close 34 bid. The 11% senior notes due 2025 dipped 4 points to close at 34 bid.

Before the open on Monday, the Norwalk, Conn.-based wireline communications company said it has elected to defer making the interest payments due on March 16 on some of its senior unsecured notes, Prospect News reported.

The company will enter a 60-day grace period as it continues constructive discussions with its bondholders regarding its capital structure.

The news confirms last week’s reports that the company was planning to forgo the payments as it prepares to file for Chapter 11 bankruptcy.

In the oil and gas space, Whiting Petroleum Corp.’s paper varied in direction after the company said it was reducing its 2020 capital budget.

The 6¼% senior notes due 2023 declined by 4½ points to close at 15 bid. The 6 5/8% senior notes due 2026 rose 1 point to close at 16½ bid.

© 2015 Prospect News.
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