Frontier rises; Hertz, Diamond Sports decline; Transocean, Callon bonds up on oil gains

By Cristal Cody

Tupelo, Miss., March 4 – Bankrupt Frontier Communications Corp.’s bonds improved in heavy secondary trading over Thursday’s session.

The company’s 11% notes due 2025 added ½ point to 58½ bid by late afternoon, a source said.

Frontier said in its 10-K filing with the Securities and Exchange Commission on Wednesday that it expects to emerge from Chapter 11 bankruptcy early this year.

The company expects to eliminate about $11 billion of debt from its balance sheet at the exit.

Frontier Communications reported it has received regulatory approvals from all the required states, except California, as well as approval from the Federal Communications Commission for the restructuring.

The U.S. Bankruptcy Court for the Southern District of New York confirmed the company’s plan of reorganization in August. The company filed for bankruptcy on April 14, 2020.

Hertz notes soften

In other distressed issues trading Thursday, Hertz Corp.’s bonds gave back gains from earlier in the week, a source said Thursday.

The company’s 5½% notes due 2024 declined 2½ points to 78¾ bid.

The notes traded Monday as high as 84 bid.

Also on Thursday, Hertz’s 6% notes due 2028 fell 1½ points to 79½ bid in secondary trading.

On Tuesday, Hertz filed a joint Chapter 11 bankruptcy plan of reorganization and reported that Knighthead Capital Management, LLC and Certares Opportunities LLC have committed to invest up to $4.2 billion to purchase a majority and up to all of the company’s common stock after it exits bankruptcy.

A hearing on the offer is scheduled for April 16 in the U.S. Bankruptcy Court for the District of Delaware.

The car rental operator, which filed for Chapter 11 bankruptcy in May 2020, expects to exit bankruptcy in the summer.

Diamond Sports drops

Meanwhile, Diamond Sports Group LLC’s 5 3/8% senior secured notes due 2026 (Ba3/CCC+) softened 1 point over Thursday’s session to 69 bid, a market source reported.

The notes had added ¼ point in the prior session after softening 7 points over the past week.

Parent company Sinclair Broadcast Group, Inc. reported weak guidance for the sports segment and that it remains interested in liability management initiatives that could include a debt exchange or redemption.

Energy bonds trade up

Market tone was mixed with the major stock indices ending more than 1% to over 2% softer.

The iShares iBoxx High Yield Corporate Bond ETF remained weak on Thursday and finished down 34 cents, or 0.39%, at $86.36.

Meanwhile, oil prices added more than $2 a barrel on Thursday after rising more than $1 on Wednesday.

The Organization of the Petroleum Exporting Countries announced Thursday that production cuts would be extended to April with the exception of Russia and Kazakhstan, which will be allowed to increase production due to continued seasonal consumption patterns.

North Sea Brent crude oil futures for May deliveries jumped $2.67 to settle the day at $66.74 a barrel.

West Texas intermediate crude oil for May deliveries climbed $2.55 to settle at $63.83 a barrel.

In the secondary market, offshore driller Transocean Inc.’s 7½% senior notes due 2026 (Ca) gained ¾ point to 66¾ bid after last being seen in heavy supply on Friday at 66 bid, a source said.

Callon Petroleum Co.’s 6 3/8% senior notes due 2026 (Caa2/D) climbed 2¼ points to 82 bid after adding 1½ points on Wednesday.

© 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.