Bombardier notes lower amid deal news; Hertz better as bankruptcy financing sought

By James McCandless

San Antonio, Sept. 22 – During the Tuesday distressed debt session, the focus shifted to newsmakers in the manufacturing and travel spaces.

Bombardier, Inc.’s notes were seen heading lower after a prospective buyer of its aerostructures unit threw questions into the closing process.

The 7½% senior notes due 2025 shaved off ¼ point to close at 76½ bid. The 7 7/8% senior notes due 2027 declined by ¼ point to close at 74¼ bid.

During the Tuesday session, news broke that the buyer of the Montreal-based airplane and railcar manufacturer’s aerostructures unit was casting doubt as to whether the closing conditions of the sale could be met by the deadline.

Spirit AeroSystems Holdings Inc. said in a filing with the Securities and Exchange Commission that the $500 million deal will automatically terminate if those conditions are not satisfied.

In the travel space, Hertz Global Holdings, Inc.’s paper was better amid reports that the company is narrowing in on bankruptcy financing.

The 6¼% senior notes due 2022 gained 1½ points to close at 47½ bid.

Late Monday, reports indicated that the Estero, Fla.-based car rental company is weighing two bankruptcy loan offers from creditors.

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