Bombardier notes gain as term loan arranged; AMC drifts as lenders claim default

By James McCandless

San Antonio, July 22 – In the midpoint of the week, the distressed debt space saw a positive trend across several sectors.

Bombardier Inc.’s notes were seen gaining after news broke of the company securing a three-year senior secured term loan.

The 7½% senior notes due 2025 rose 2½ points to close at 75½ bid. The 6% senior notes due 2022 jumped up 4 points to close at 88 bid.

Early Wednesday morning, the Montreal-based air and rail manufacturer announced that it has secured up to C$1 billion through a commitment for a three-year senior secured term loan, Prospect News reported.

The funds for the term loan are from funds and accounts managed by HPS Investment Partners, LLC.

The facility is expected to be in place in Q3 2020.

Meanwhile, theater chain AMC Entertainment Holdings Inc.’s issues drifted lower as its lenders claim that the company is in default.

The 5 7/8% senior subordinated notes due 2026 gave up 1 point to close at 26¼ bid. The 5¾% senior subordinated notes due 2025 lost 3¼ points to close at 25½ bid.

Reports indicated on Wednesday that a group of the Leawood, Kan.-based movie theater chain’s lenders have alleged that the company is in default.

© 2015 Prospect News.
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