Tenneco notes drop as new issue prices; Peabody Energy in focus as ratings lowered

By James McCandless

San Antonio, Nov. 13 – Auto and energy names were the focus of distressed debt trading on Friday.

Tenneco Inc.’s notes dropped as the company brought a $500 million eight-year issue of senior secured notes to market.

The 5% senior notes due 2026 lost 1 point to close at 82¾ bid.

During Friday’s activity, the Lake Forest, Ill.-based automotive parts maker priced a $500 million issue of senior secured notes due Jan. 15, 2029 at par to yield 7 7/8%, Prospect News reported.

The yield came down from around 8¼% in initial talk.

Also on Friday, the company announced that it would redeem the €415 million of its outstanding 4 7/8% senior secured notes due 2022 in full on Dec. 14.

Meanwhile, coal miner Peabody Energy Corp.’s issues varied in direction after receiving a ratings downgrade.

The 6% notes due 2022 tacked on 1 point to close at 41¼ bid. The 6 3/8% notes due 2025 shaved off ½ point to close at 27 bid.

On Friday morning, the St. Louis-based coal mining company received a ratings downgrade from Moody’s Investors Service.

The agency slashed the name’s corporate family rating, senior secured debt ratings and speculative grade liquidity rating.

© 2015 Prospect News.
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