Exela Technologies lower after ratings downgrade; Revlon notes weaken in retail sector

By James McCandless

San Antonio, Aug. 16 – The distressed debt space saw modest activity to close out the week, with news-driven names moving the most.

Exela Technologies, Inc.’s notes declined after being issued a ratings downgrade during the Friday session.

The 10% senior secured notes due 2023 lost 1¾ points to close at 62 bid.

On Friday, S&P Global Ratings issued downgrades for the Irving, Tex.-based business software provider.

The agency cut Exela’s overall rating to CCC+ from B- and lowered its senior secured credit facility rating, citing its view that the company’s capital structure is unsustainable to the point that it is at increased risk for a restructuring over the next 12 months.

In retail, Revlon, Inc.’s issues were dipping as the market reacts to the company’s hiring of a financial adviser for a strategic alternatives review.

The 5¾% senior notes due 2021 shaved off ½ point to close at 89½ bid. The 6¼% notes due 2024 fell 1 point to close at 56½ bid.

During the day on Friday, a large shareholder of the New York City-based cosmetics producer confirmed news Thursday that the company has hired outside adviser Goldman Sachs to help conduct a strategic alternatives review.

MacAndrews and Forbes disclosed the move in a regulatory filing.

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