PetSmart in focus after note offering pulled; CBL trades mixed on bankruptcy filing

By James McCandless

San Antonio, Nov. 2 – Retail-focused names were at the forefront of the distressed debt market as a new week began.

PetSmart, Inc.’s notes diverged in direction after the company pulled a notes and term loan offering late last week.

The 8 7/8% senior notes due 2025 rose 1½ points to close at 101¼ bid. The 5 7/8% senior notes due 2025 dipped ½ point to close at 102 bid.

About $74 million of the two tranches combined were on the tape.

Toward the end of the Friday session, the Phoenix-based pet supplies chain and PetSmart Finance Corp. pulled their $2.65 billion megadeal from the market amid investor push-back and market volatility, Prospect News reported.

Elsewhere, CBL & Associates Properties, Inc.’s paper varied after the company filed for Chapter 11 bankruptcy.

The 5¼% senior notes due 2023 held level to close at 36¾ bid. The 4.6% senior notes due 2024 lost 1¼ points to close at 35½ bid.

On Monday morning, the Chattanooga, Tenn.-based mall-focused real estate investment trust announced that it filed voluntary petitions for reorganization under Chapter 11 in bankruptcy court.

The company will implement a plan to recapitalize the company, including restructuring portions of its debt.

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