Hertz notes eyed after analyst comments; American Airlines declines in travel space

By James McCandless

San Antonio, June 24 – In the midpoint of the week, the distressed space turned its attention on volume leaders in the travel sector.

Hertz Global Holdings, Inc.’s notes varied after analyst comments on how to potentially utilize its inventory during the bankruptcy process.

The 6¼% senior notes due 2022 picked up ¼ point to close at 27¼ bid. The 5½% senior notes due 2024 declined by ½ point to close at 26½ bid.

Early Wednesday, the Estero, Fla.-based car rental company’s structure received heightened attention after analysts at Jefferies suggested that auto sellers CarMax and AutoNation could potentially buy up the bulk of Hertz’s used car inventory to raise capital for its bankruptcy.

In a note, the analysts said that the sale could raise up to $3 billion.

Meanwhile, in air travel, American Airlines Group Inc.’s issues dropped after cancelling a term loan offering and refocusing on bonds.

The 5% senior notes due 2022 cratered 8½ points to close at 60 bid. The 3¾% senior notes due 2025 lost 3½ points to close at 53 bid.

The Fort Worth-based airline terminated plans for a term loan on Wednesday, Prospect News reported.

Initially part of its multi-faceted capital raise, the company instead shifted focus to its now-upsized senior secured notes offering and upsized convertibles offering.

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