Exela notes higher as stock plunges; Transocean rallies; Party City notes move lower

By Cristal Cody

Tupelo, Miss., July 26 – Short-dated paper carrying 11½% coupons from Exela Technologies, Inc. and Transocean Inc. saw strong distressed secondary market action on Tuesday.

The issuers stood out amongst the most active junk names traded over the session, sources said.

Exela’s 11½% first priority senior secured notes due 2026 (Caa3/CCC-) traded more than 1 point better, while its shares plunged more than 35% after the company effected a reverse stock swap the previous day.

The bonds rose 1 1/8 points to 30 5/8 bid on $13 million of paper traded, a source said.

Transocean’s 11½% senior guaranteed notes due 2027 (Caa3/CCC) were quoted at 90¾ bid on $11 million of secondary volume, according to a market source.

The notes moved about ½ point higher on the day after trading as high as 91 7/8 bid earlier in the session.

Transocean’s 8% debentures due 2027 (Ca/CCC) rallied 3 points to 60 bid by the close, attracting $3 million of secondary supply.

Also Tuesday, Party City Holdings Inc.’s 8¾% senior secured notes due 2026 (B3/B-) dropped another 2 points.

The issue was quoted at 61¾ bid and carrying a yield of 25.85% on $4 million of trading volume, a source said.

The bonds dropped 2 1/8 points on Monday.

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