Bankrupt Enviva paper jumps; WW International softens; CommScope rallies

By Cristal Cody

Tupelo, Miss., March 13 – Distressed names across sectors traded on Wednesday with newly bankrupt Enviva Partners, LP’s bonds among the more active issues.

Enviva’s 6½% senior notes due 2026 (Caa2/CC/CC) shot up nearly 10 points to 41 bid on $9 million of bonds traded after the company reported it filed for Chapter 11 bankruptcy on Tuesday, a source said.

WW International Inc.’s 4½% senior secured notes due 2029 (B3/B) gave back over ¼ point to head out at just under 43 1/8 bid in lighter trading following a strong uptick in secondary action the previous day, a source reported.

Barclays Capital Inc. views “WW as a company facing a tough end market with increasing competition whilst in the early innings of a changeover to a digital health strategy,” analyst Stephanie Davis said in a note released Wednesday to Prospect News. “We are lowering our estimates.”

CommScope Holding Co., Inc.’s paper rallied around 1½ points to 4½ points in some of the day’s most active distressed issues in the wake of a downgrade from Moody’s Investors Service on fears of a distressed debt exchange.

CommScope’s 8¼% notes due 2027 (Ca/CCC-) rallied 4¼ points to 50¼ bid on $9 million of volume, a source said.

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