Diebold notes gain as new offering prices; Tupperware lower after tender results

By James McCandless

San Antonio, July 9 – The distressed debt market focused on commerce and travel names on Thursday.

Diebold Nixdorf, Inc.’s notes gained in the run-up to the company’s pricing of two tranches of five-year senior secured notes.

Meanwhile, Tupperware Brands Corp.’s issues drifted lower after releasing the results of its second tender offer.

In the air travel space, United Airlines Holdings, Inc.’s paper varied in direction after receiving a ratings downgrade.

Sector peer American Airlines Group Inc.’s notes saw positivity.

As oil futures were depressed, Occidental Petroleum Corp.’s, Whiting Petroleum Corp.’s and Antero Resources Corp.’s issues took diverging paths.

Elsewhere, in retail, Party City Holdco Inc.’s paper extended a negative run a day after regaining NYSE compliance for its common stock.

Drug store chain Rite Aid Corp.’s notes improved.

Diebold gains

Diebold’s notes gained ground during the session, traders said.

The 8½% senior notes due 2024 tacked on 1 point to close at 88 bid.

Toward the end of the afternoon on Thursday, the North Canton, Ohio-based connected commerce solutions name priced two tranches of five-year senior secured notes, Prospect News reported.

The company priced $700 million of 9 3/8% notes at 99.031 to yield 9 5/8% while subsidiary Diebold Nixdorf Dutch Holding BV priced €350 million of 9% notes at 99.511 to yield 9 1/8%.

With the sale’s proceeds and cash on hand, the company plans to repay part of the amounts outstanding under its senior credit facility.

The plan calls for Diebold to repay all amounts outstanding on its term loan A facility and term loan A-1 facility and about $194 million of revolving credit loans.

Concurrently, the company is working to extend the maturities on its revolving credit commitments and loans.

Tupperware lower

Meanwhile, Tupperware’s issues drifted lower by the end of the day, market sources said.

The 4¾% senior notes due 2021 shaved off ½ point to close at 63½ bid.

The Orlando, Fla.-based housewares marketer announced the expiration and final tender results of its second tender offer for its offer to purchase for cash its 2021 notes on Thursday, Prospect News reported.

At the previous tender deadline of June 23, the company accepted for purchase and made payment on $97,402,000 of the principal amount.

Since that time, an additional $157,000 principal amount of notes were tendered, bringing the total to $97,559,000.

The first tender started on May 26.

Airlines eyed

In the air travel space, United Airlines’ paper varied in direction, traders said.

The 5% senior notes due 2024 rose 1 point to close at 81 bid. The 4¼% senior notes due 2022 declined by 1½ points to close at 85¾ bid.

On Thursday, the Chicago-based air carrier’s structure was eyed after receiving a ratings downgrade.

S&P Global Ratings cut the company’s issuer rating, senior secured debt rating and recovery rating.

The agency affirmed a negative outlook.

S&P said that it expects the airline to make an uneven recovery continuing into 2021.

News broke on Wednesday that United was preparing potential furlough notices for 36,000 U.S.-based frontline employees, representing about 45% of its workforce.

“I think airlines are a mixed bag right now,” a trader said. “The up and down of coronavirus cases injects a lot of uncertainty into the space.”

Fort Worth-based sector peer American Airlines’ notes saw positivity.

The 5% senior notes due 2022 picked up ¼ point to close at 52½ bid. The 3¾% senior notes due 2025 improved by ½ point to close at 43 bid.

Oil names diverge

As oil futures were depressed as they settled, distressed energy tranches moved in opposite directions, market sources said.

West Texas Intermediate crude oil futures for August delivery moved down $1.28 to finish the day at $39.62 per barrel.

North Sea Brent crude oil futures for September delivery ended at $42.35 per barrel after dipping 94 cents.

Houston-based independent oil and gas producer Occidental Petroleum’s issues diverged.

The 2.9% senior notes due 2024 pushed up ¼ point to close at 89¾ bid. The 2.7% senior notes due 2022 shaved off ¾ point to close at 94 bid.

Denver-based producer Whiting Petroleum’s paper also saw mixed results.

The 6¼% senior notes due 2023 shot up ¾ point to close at 17 bid. The 6 5/8% senior paper due 2026 gave up 1¼ points to close at 15 bid.

Antero Resources, another Denver-based peer, saw its notes take separate tracks.

The 5 5/8% senior notes due 2023 slipped ¾ point to close at 64¼ bid. The 5% senior notes due 2025 garnered ¼ point to close at 60¼ bid.

Party City down

Elsewhere, in retail, Party City’s issues extended a negative run, traders said.

The 6 1/8% senior notes due 2023 chalked off 1 point to close at 16 bid.

On Wednesday morning, the Elmsford, N.Y.-based party supplies retailer announced that it had regained compliance for its common stock to remain listed on the New York Stock Exchange.

The company was originally notified on April 9 of its potential delisting.

Despite the positive news on the equity side, the issues saw a fourth straight day of negative attention.

Camp Hill, Pa.-based drug store chain Rite Aid’s paper improved.

The 6 1/8% senior notes due 2023 rose 1 point to close at 98 bid.

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