Bombardier notes jump on purchase agreement; Transocean eyed in energy space

By James McCandless

San Antonio, Sept. 16 – At the week’s midpoint, the distressed debt session turned its focus to manufacturing and energy names.

Bombardier, Inc.’s notes jumped upward on news that the company had reached a purchase agreement to sell its rail unit.

The 6% senior notes due 2022 shot up 7¾ points to close at 92½ bid. The 7 7/8% senior notes due 2027 added 5¼ points to close at 74½ bid.

On Wednesday, news broke that the Montreal-based air and rail manufacturer has finalized a purchase agreement for its rail segment.

The company has agreed to sell the division to French counterpart Alstom for about $4 billion, $350 million less than what was originally expected.

In the oil and gas space, Transocean Ltd.’s issues varied in direction after an analyst downgraded the company and its common stock.

The 6.8% senior notes due 2038 shaved off ½ point to close at 15¾ bid. The 7½% senior notes due 2031 picked up 1¾ points to close at 15¾ bid.

The Steinhausen, Switzerland-based contract driller’s structure was eyed after the company received an analyst downgrade.

In a note, an analyst at Susquehanna said that the company is not immune to the challenges faced by the offshore industry.

© 2015 Prospect News.
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