Talen Energy notes drop; EnLink trades higher; PBF softens; Diamond Sports declines

By Cristal Cody

Tupelo, Miss., June 28 – Talen Energy Supply LLC’s bonds dropped about 2 points to nearly 6 points in strong secondary trading over Monday’s session.

The company’s 6½% senior notes due 2025 (B3/CCC+/B) fell more than 5¾ points on $3.9 million of volume to head out at 67 bid, a source said.

The notes traded in the 84½ bid range at the end of May and the 82 bid area at the start of the year.

Talen’s 10½% notes due 2026 (B3/CCC+/B) sank 5¾ points to 74¼ bid on more than $5.4 million of paper traded Monday.

The notes were quoted Friday down about ½ point at 80 bid with the issue about 3½ points better on the week.

The bonds have softened from 91 bid at the end of May and the 89 bid area in early January.

On June 16, Moody’s Investors Service lowered The Woodlands, Tex., and Allentown, Pa.-based power company’s outlook to negative from stable.

EnLink improves

Dallas-based energy company EnLink Midstream Partners LP’s 6% perpetual preferreds (B1/B+/BB-) rallied over 3¼ points on Monday to trade at 77 bid on more than $2.8 million of secondary supply, a source said.

Oil prices fell more than $1 during the session.

North Sea Brent crude oil futures for August deliveries declined $1.50 to settle at $74.68 a barrel.

West Texas intermediate crude oil benchmark futures for August deliveries dropped $1.14 to settle at $72.91 a barrel.

Overall market tone was weaker.

The iShares iBoxx High Yield Corporate Bond ETF fell 2 cents to $87.92.

The S&P U.S. High Yield Corporate Distressed Bond index ended the prior week up 0.08% on Friday and with month-to-date total returns of 1.86% and year-to-date total returns of 26.84%.

In other distressed energy issues, petroleum refiner PBF Holding Co. LLC’s 7¼% senior notes due 2025 (B3/B+/B+) fell more than 1¾ points to the 79 bid area on $1.5 million of secondary action on Monday, a source said.

The bonds from the Calgary, Alta.-based subsidiary of Parsippany, N.J.-based petroleum refiner PBF Energy Inc. have climbed from trading at 64½ bid at the start of the year.

Diamond Sports weakens

In other distressed secondary activity, Diamond Sports Group LLC’s 6 5/8% senior notes due 2027 (Caa2/CCC-) slipped 1¾ points to hit 46¾ bid on $1 million of bonds traded on Monday, a source said.

The notes traded at the 60½ bid area in early 2021.

Diamond Sports’ bonds softened more than 8 points in the prior week after parent company Sinclair Broadcast Group, Inc. disclosed attempts to secure new funding for the Chesapeake, Va.-based sports broadcast group.

Sinclair reported in a June 21 filing with the Securities and Exchange Commission that it made two proposals to lenders and noteholders of Diamond Sports, including a March 22 proposal and an April 29 proposal.

However, the company said it has been unable to reach a definitive agreement with certain lenders and noteholders on funding new debt and exchanging and/or repurchasing its existing debt.

The March proposal featured $600 million of new money first priority super priority debt and up to $6.34 billion of second priority super priority debt.

In the April proposal, Sinclair proposed $500 million of new money financing and a roll-up of its notes into $100 million of first-lien bonds at prices between par and a 35% discount and yields from 9½% to 6.615% across three tranches.

Ligado edges down

Meanwhile Monday, Ligado Networks’ 15½% senior secured first-lien notes due 2023 (Caa1) shed ¼ point to trade at 99 bid in strong volume over the day, a source said.

The issue had improved ¼ point on Friday.

On June 22, Moody’s changed the Reston, Va.-based satellite communications company’s outlook to negative from stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.