Endo Finance notes active following patent loss; Vericast, Carrols Restaurant improve

By Abigail W. Adams

Portland, Me., Aug. 31 – While trading volume remained light on Tuesday, topical news and end-of-month activity turned the spotlight on some distressed debt names.

Endo Finance LLC’s 9½% senior secured notes due 2027 were among the most actively traded issues in the secondary space on Tuesday.

The notes were off slightly in the high-volume activity following news the pharmaceutical company lost the patent for one of its products.

Vericast Corp.’s 11% senior notes due 2026 were on the rise in light volume with exchange offers underway for the marketing services company’s shorter duration notes.

Carrols Restaurant Group, Inc.’s 5 7/8% senior notes due 2029 were lifted in active trading.

Meanwhile, distressed energy credits were quiet on Tuesday as futures gave back some of their gains ahead of Wednesday’s OPEC meeting.

WTI crude oil futures settled at $68.53, a decrease of 68 cents or 0.98%. Brent crude oil futures settled at $72.99, a decrease of 42 cents or 0.57%.

Endo in focus

Endo’s 9½% senior secured notes due 2027 were among the most actively traded issues in the secondary space on Tuesday.

The notes were down about ¼ point to close the day at 98¼, according to a market source.

There was more than $24 million in reported volume.

The notes were in focus following news that the pharmaceutical company had lost its battle to protect the patent on its blood pressure drug Vasostrict.

The news comes shortly after Endo tapped a financial restructuring adviser to evaluate its options to handle the nearly 3,000 cases pending against Endo for its role in the opioid epidemic.

Vericast higher

Vericast’s 11% first-lien senior secured notes due 2026 were on the rise on Tuesday as the company prepares to issue more notes as part of an exchange agreement for its shorter duration tranches.

The 11% notes were marked up 1 point to close the day at 106¼.

However, the trades that lifted the notes were smaller size prints, a source said.

The only round lot, or $1 million plus, print on the tape was at 105¼ early in the session.

The marketing services company is seeking consent solicitations to enter into exchanges with holders of its shorter duration notes.

The company is offering to exchange the $800 million outstanding of its 8 3/8% senior secured notes due 2022 and $324,998,910 outstanding 12½% senior secured notes due 2024 for new 11% first-lien senior secured notes due 2026.

Holders of the 2022 notes are being offered $1,010 of new notes for $1,000 of old notes plus a $10 cash consideration.

Holders of the 2024 notes are being offered $1,030 of new notes for $1,000 of old notes plus a $10 cash consideration, Prospect News reported.

Carrols notes rise

Carrols Restaurant’s 5 7/8% senior notes due 2029 were lifted in active trading, which sources attributed to end-of-month activity.

The 5 7/8% notes climbed about 1 point.

They were changing hands in the 96½ to 96¾ context heading into the market close, a source said.

Carrols reported earnings on Aug. 12 and announced that its adjusted leverage ratio improved to 3.82x versus 4.18x a year ago.

© 2015 Prospect News.
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