WeWork notes up despite scrapped tender offer; Whiting Petroleum higher in energy space

By James McCandless

San Antonio, April 2 – Despite negative economic news, the distressed debt space saw positivity centered on the energy sector on Thursday.

WeWork Cos. Inc.’s notes gained despite news that a large investor will be pulling out of a $3 billion tender offer.

The 7 7/8% senior notes due 2025 added ¾ point to close at 36 bid.

On Thursday, news broke that large investor SoftBank has scrapped a tender offer for $3 billion of stock in the New York-based coworking startup.

In its statement announcing the change, Softbank said that several conditions went unfulfilled in order for the deal to continue.

Major breaches included antitrust issues, pending criminal and civil investigations against the company and restrictions placed on its locations due to the coronavirus pandemic.

Last week, the company told bondholders that it had enough cash to keep itself afloat during the crisis despite burning $1.4 billion in the previous quarter.

In oil and gas, Whiting Petroleum Corp.’s issues were lifted mainly on a reported deal between Saudi Arabia and Russia to curb oil production.

The 6¼% senior notes due 2023 tacked on 3 points to close at 8¼ bid. The 6 5/8% senior notes due 2026 rose 2¼ points to close at 8¼.

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