Caesars second-lien agreement expires; iHeart declines; Toys gains; Abengoa drifts lower

By Stephanie N. Rotondo

Phoenix, Sept. 21 – The distressed debt arena ended Monday’s session with a weaker tone.

Caesars Entertainment Corp. said during the session that its restructuring agreement with second-lien bondholders of Caesars Entertainment Operating Co. Inc. expired on Friday. Come Monday trading, the second-lien issues were losing ground.

The expiration of the agreement has no bearing on the deal with the opco and first-lien noteholders and bank lenders, the company noted.

Meanwhile, iHeart Media Inc. paper was also weaker, though in that instance, there was no news to act as a catalyst. Traders noted that the 10% notes due 2018 got smacked down a fair bit, with one speculating that it was due to losses seen in the 14% notes due 2021 on Friday.

Toys “R” Us. Inc., however, managed to buck the day’s trend. The bonds were seen mostly better on the day – nearly a week after the company reported a narrower quarterly loss.

A conference call to discuss said results was held Monday.

In the emerging market arena, Abengoa SA bonds were “supposedly down a good bit,” a trader said, though he had not seen any markets.

Also in the emerging market space, Brazilian telecom Oi saw its debt take a hit after it was reported by a local paper that the company had hired NM Rothschild & Sons (Brasil) to look into restructuring options.

© 2015 Prospect News.
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