American Airlines notes eyed as stimulus talks halt; Hertz trades mixed in travel space

By James McCandless

San Antonio, Oct. 6 – With the abrupt news that stimulus negotiations have ended, the distressed debt space focused on names in the hard-hit transportation sector on Tuesday.

American Airlines Group, Inc.’s notes diverged in direction after all stimulus negotiations were abruptly halted Tuesday afternoon.

The 5% senior notes due 2022 rose ½ point to close at 71½ bid. The 11¾% senior notes due 2025 gave up 2 points to close at 97¾ bid.

The Fort Worth-based commercial airline’s structure remained in focus, with investor sentiment softening into the afternoon after president Donald Trump announced that stimulus negotiations would halt immediately.

“Everything kind of went off a cliff after that,” a trader said. “This could change tomorrow or some other time, but it adds a lot of uncertainty to the short-term.”

Elsewhere in travel, Hertz Global Holdings, Inc.’s paper varied amid reports that the company is entertaining offers for its car leasing unit.

The 6¼% senior notes due 2022 sank 3½ points to close at 41¾ bid. The 5½% senior paper due 2024 gained ½ point to close at 44½ bid.

During the Tuesday session, reports indicated that the Estero, Fla.-based car rental company is entertaining offers from two private equity firms for its car leasing segment.

© 2015 Prospect News.
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