Frontier Communications notes eyed after new issue trades; American Airlines active

By James McCandless

San Antonio, Oct. 2 – Telecom and transportation names were the focus of Friday trading in the distressed debt market.

Frontier Communications Corp.’s notes diverged in secondary trading one day after the company sold a $1.15 billion issue of seven-year notes.

The company’s existing 10½% senior notes due 2022 added ¼ point to close at 42½ bid. The 11% senior notes due 2025 shed ¼ point to close at 42½ bid.

After the close on Thursday, the Norwalk, Conn.-based wireline communications company priced a $1.15 billion issue of seven-year first-lien senior secured notes at par to yield 5 7/8%, Prospect News reported.

The company had begun shopping the new offering on Tuesday.

In the transporation space, American Airlines Group, Inc.’s paper varied as the government starts talks for a second round of payroll aid for the industry.

The 5% senior notes due 2022 picked up 3 points to close at 71 bid. The 11¾% senior notes due 2025 were pushed down ¾ point to close at 97 bid.

The Fort Worth-based airline’s structure was in focus after the expiration of the federal government’s payroll aid for the industry.

Sector peer United Airlines Holdings, Inc.’s notes rose.

© 2015 Prospect News.
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