Distressed debt muted by new issues; Sprint; Windstream, Frontier stay weak; CRC ends firm

By Stephanie N. Rotondo

Seattle, Sept. 22 – The distressed debt market again took a backseat to the overall high-yield space on Friday, due in part to recently priced issues, as well as news regarding Sprint Corp.

Sprint bonds were “very active” on reports the wireless telecommunications company was nearing a merger agreement with T-Mobile, a trader said.

The two companies have reportedly been having frequent discussions about a pair-up that would marry the third- and fourth-largest wireless carriers in the U.S. A deal could come to fruition by the end of October, according to sources familiar with the matter.

But Sprint’s good news didn’t do much to help struggling telecom names like Windstream Holdings Inc. or Frontier Communications Corp.

A trader said that Frontier’s 9% notes due 2031 were holding around 75.

Another trader said Windstream’s debt was “still weak,” with its longer-dated issues – such as the 6 3/8% notes due 2023 – slipping to “around 68.”

“They keep sliding a little bit,” the trader said.

Windstream’s Uniti Corp.-linked debt was also lower, according to a trader.

The trader called the 8¼% notes due 2023 almost half a point lower at 90 1/8.

In the oil and gas arena, California Resources Corp.’s 8% second-lien notes due 2022 were “active and higher too,” a trader said.

The trader saw the notes rising 1½ points to 63.

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