Talen gains after bankruptcy filing; Endo pressure continues; distressed returns weak

By Cristal Cody

Tupelo, Miss., May 10 – Talen Energy Supply LLC’s bonds climbed over 15 points after the company announced on Tuesday it had filed for Chapter 11 bankruptcy.

Talen’s 10½% senior notes due 2026 (C/D/CCC) jumped over 15 points in heavy trading to 58 bid, a source said.

Talen’s 6½% senior notes due 2025 (C/D/CCC) also rose to the 60 bid area by late afternoon, up from the 41 bid range on Monday.

Endo International plc’s paper continued to mostly wilt following a nose-dive on Friday and additional losses on Monday.

Endo Finance LLC’s 6% senior notes due 2028 (Caa3/CCC-) traded down 1¼ points on Tuesday to hit 14½ bid by the day’s end, a market source said.

The pharmaceutical company’s 9½% senior secured second-lien notes due 2027 (Caa2/CCC-) steadied over the session to head out mostly flat from Monday at 31½ bid.

Endo’s paper sank about 4¼ points to over 26 points on Friday after the company reported weak first-quarter earnings and limited financial guidance for the year.

Meanwhile, corporate distressed bond index returns remained in the negative space at the start of the week.

On Monday, the S&P U.S. High Yield Corporate Distressed Bond index was sitting at minus 0.72% for one-day total returns and at minus 5.29% for month-to-date total returns.

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