Bausch falls over 5 points; Transocean bonds nearly 10 points lower on week; Talen softens

By Cristal Cody

Tupelo, Miss., July 13 – Bausch Health Cos. Inc.’s paper turned lower this week with the company’s bonds trading more than 5 points softer through Wednesday.

Bausch Health’s 8½% senior notes due 2027 (B3/B-/B) dropped 4½ points during the session.

The day’s economic data sent market tone down after the Labor Department reported the Consumer Price Index jumped 9.1% over the past 12 months in June, higher than forecasts of an 8.8% rise in inflation.

Major stock indices were soft a third straight day.

The iShares iBoxx High Yield Corporate Bond ETF fell 6 cents, or 0.09%, to $74.71.

West Texas Intermediate crude oil benchmark futures for August deliveries were up marginally by 46 cents to $96.30 a barrel after dropping $8.25 on Tuesday.

Transocean Inc.’s paper remained soft with the 7½% senior notes due 2031(C/CCC-) trading down nearly 10 points since Friday and moving below a 50 handle on Wednesday.

Bankrupt Talen Energy Supply LLC’s 10½% senior notes due 2026 also declined ¾ point over the day.

Bausch Health drops

Bausch Health’s paper continued to soften in active secondary trading Wednesday, a source said.

The company’s 5¼% senior notes due 2031 (B3/B-/B) were trading about 7 points lower so far this week with the notes going out Wednesday at 45¾ bid.

The issue was last seen active on Monday at 51 bid.

The Laval, Quebec-based pharmaceutical company’s 8½% senior notes due 2027 (B3/B-/B) issued by Bausch Health Americas, Inc. dropped 4½ points in heavy trading Wednesday, going out at 65 bid.

The notes are more than 5 points lower this week.

Transocean declines

Transocean’s 8% debentures due 2027 (Ca/CCC) were quoted down 1 point at 57 bid Wednesday following a four-point-decline in the previous session, according to a market source.

The issue ended the prior week trading at 65¾ bid.

The Vernier, Switzerland-based offshore driller’s 7½% senior notes due 2031 (C/CCC-) sank below a 50 handle Wednesday with the issue quoted down nearly 5½ points at 45½ bid.

The bonds are down 8¾ points since Friday.

Talen weaker

Talen Energy’s 10½% senior notes due 2026 (C) moved down ¾ point in mostly light trading Wednesday, going out at 63 bid, a market source said.

The issue has declined about 2 points this month.

In June, the U.S. Bankruptcy Court of the Southern District of Texas approved a $1.76 billion debtor-in-possession financing package for the company that featured a $1 billion term loan, a $300 million revolving credit facility and a $458 million letter-of-credit facility.

The Woodlands, Tex. and Allentown, Pa.-based power generation and infrastructure company filed for Chapter 11 bankruptcy in May.

Distressed returns lower

The S&P U.S. High Yield Corporate Distressed Bond Index was soft in the first two sessions of the week.

One-day total returns was minus 0.45% on Tuesday and minus 0.08% on Monday.

Month-to-date total returns declined Tuesday to minus 1.05% from minus 0.6% at the week’s start.

Year-to-date total returns were lower at minus 23.44%, compared to minus 23.09% on Monday.

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