Team Health notes gain; Air Methods, Endo decline; Telesat mixed; Evergrande better

By Cristal Cody

Tupelo, Miss., Nov. 29 – Team Health Holdings, Inc.’s 6 3/8% senior notes due 2025 (Caa3/CCC) rallied nearly 3 points on Monday as the paper improves from October declines.

Other issuers in the distressed health care and pharmaceuticals space stayed mostly weaker in post-Thanksgiving Day trading.

Air Methods Corp.’s 8% senior notes due 2025 (Caa3/CCC) declined 1¼ points.

Endo International plc’s 6% senior notes due 2028 (Caa3/CCC-) traded ½ point lower by the close after dropping 1¼ points early in the session.

Mallinckrodt plc’s bonds mostly declined over the day but remain about 13 points to 15 points stronger so far in November.

Market tone was stronger over the Cyber Monday following Friday’s short market session.

The iShares iBoxx High Yield Corporate Bond ETF jumped 53 cents to $86.00.

Oil prices saw some relief after Friday’s plunge.

West Texas Intermediate crude oil benchmark futures for January deliveries gained $1.80 to settle at $69.96 a barrel.

WTI futures settled Wednesday before the holiday at $78.39 a barrel before sinking in a holiday-shortened market session on Friday.

In other distressed secondary activity, Talen Energy Supply LLC’s bonds were mostly unchanged.

Telesat Corp.’s bonds were mixed with the unsecured paper higher.

China Evergrande Group’s bonds improved.

Agile Group Holdings Ltd.’s 5¾% senior notes due 2025 (B+) traded nearly 1½ points weaker.

Team Health improves

Team Health’s 6 3/8% senior notes due 2025 (Caa3/CCC) traded over 2¾ points better on Monday at 88 bid on $1.5 million of volume, a source said.

The notes have gained since declining from the 97 bid area in October.

Team Health issued the notes via Tennessee Merger Sub, Inc.

The Knoxville, Tenn.-based medical staffing firm is owned by Blackstone Group LP.

Air Methods lower

New York-based ambulance service provider ASP AMC Holdings Inc.’s notes traded lower on Monday, a source said.

Subsidiaries Air Methods’ and ASP AMC Merger Sub Inc.’s 8% senior notes due 2025 (Caa3/CCC) fell 1¼ points to 78 bid on over $2.25 million of secondary supply.

The issue is up modestly in November after ending October at 76½ bid, down from 94½ bid at the start of the month.

Endo bonds decline

Endo Finance LLC’s 6% senior notes due 2028 (Caa3/CCC-) traded ½ point lower at 75¾ bid by the session’s close, a source said.

The notes were down 1¼ points at 75 bid in early trading after going out ahead of the holiday about 1¾ points softer on the week at 76¼ bid.

The notes are over 6 points higher from where the issue was quoted a month ago.

The Dublin-based pharmaceutical maker’s bonds saw gains earlier in November after a California state trial ruled that its subsidiaries are not liable for opioid-related claims.

Mallinckrodt lower

Mallinckrodt’s bonds mostly declined on Monday but remain stronger so far in November, a source said.

The 5¾% senior notes due 2022 were quoted ending the session down ½ point at 57¼ bid.

The company’s 5 5/8% notes due 2023 dropped 1¾ points to 56¾ bid on $1 million of volume over the day.

Further out in the structure, Mallinckrodt’s 5½% senior notes due 2025 improved about ½ point to the 59½ bid area.

The Dublin- and St. Louis-based bankrupt pharmaceutical maker’s paper has rallied about 13 points to 15 points in November.

Talen notes steady

Talen Energy’s notes were mixed in secondary trading on Monday after sliding about 5½ points to 9 points in the prior week, a source said.

The 6½% senior notes due 2025 (Caa1/CCC/B-) were flat to modestly softer at 56 7/8 bid.

Talen’s 10½% senior notes due 2026 (Caa1/CCC/B-) went out unchanged at 60½ bid after softening 1 point in early trading.

The Woodlands, Tex., and Allentown, Pa.-based power company is scheduled to hold its third-quarter conference call on Thursday.

Telesat unsecureds up

Telesat’s unsecured paper traded better on Monday, while its secured notes declined, a source said.

Telesat Canada LLC’s 6½% senior notes due 2027 (Caa1/B) were more than 1¾ points higher at the 78½ bid area on over $3 million of volume.

Telesat Canada’s 4 7/8% senior secured notes due 2027 (B1/BB-) softened nearly 1 point to the 87 bid range over the day. Secondary volume totaled $1.5 million.

Ottawa-based satellite communications company Telesat announced on Nov. 19 that subsidiaries Telesat Canada and Loral Space & Communications Inc. completed their merger.

Telesat also began trading on the Nasdaq and Toronto Stock Exchange under the ticker “TSAT” following the merger’s close. The company’s stock was down 5.03% at $31.72 on Monday.

Evergrande gains

In China’s distressed property developer space, China Evergrande’s dollar notes traded higher on Monday, a source said.

The Shenzhen, China-based real estate developer’s 8¼% senior notes due 2023 (C/C/C) improved over 2½ points to 34¼ bid with $1 million of paper changing hands.

Defaults for Chinese property developers are expected to increase over the next year, S&P Global Ratings notes.

Issuers including Evergrande, Fantasia Holdings Group Co. Ltd., Sinic Holdings (Group) Co. Ltd., China Properties Group Ltd., Kaisa Group Holdings Ltd. and Modern Land (China) Co. Ltd. have missed bond payments since September.

Trading in Fantasia’s shares on the Hong Kong Stock Exchange was halted on Monday, pending a release from the company.

Elsewhere in the space, Agile’s 5¾% senior notes due 2025 (B+) traded nearly 1½ points weaker at 69 bid, a source said Monday.

Volume in the Guangzhou, China-based property developer’s issue totaled $1 million.

Distressed index soft

Distressed index returns closed out the holiday week soft.

The S&P U.S. High Yield Corporate Distressed Bond index’s one-day total return was minus 0.97% on Friday, while the month-to-date total return was minus 4.86%.

Year-to-date total returns were 22.76% on Friday.

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