iHeart notes gain despite Liberty’s withdrawal; Community Health mixed to end week

By James McCandless

San Antonio, June 22 – Activity in the distressed debt market was again restricted to volume favorites and news-driven names.

iHeartMedia, Inc. notes improved on Friday despite news that Liberty Media Corp. withdrew its proposal to invest in the company.

Community Health Systems, Inc. issues were mixed to close the week. On Wednesday, the company announced the results of three exchange offers intended to extend its debt maturities.

Frontier Communications Corp. paper was mixed a day after the company’s chief financial officer announced his departure.

Intelsat SA notes declined for a second day after strong gains on Wednesday.

California Resources Corp.’s issues improved as oil futures made multi-point gains.

PHI, Inc.’s paper rose. The company recently announced a cash tender offer for its 5¼% notes due 2019.

iHeart improves

Notes of San Antonio-based outdoor communications company iHeartMedia gained, traders confirmed, despite the news that Liberty Media Corp. has officially withdrawn its proposal to invest in the bankrupt company.

Liberty Media said it decided to pull out after reviewing iHeartMedia’s results, which were below expectations and negatively impacted Liberty’s initial estimates of the company’s value (see related story elsewhere in this issue).

“It was pretty much one issue moving today,” a trader said. “That’s more about when the news came out. Today was pretty muted overall.”

iHeartMedia’s 7¼% notes due 2027 gained 1 point to close at 26 bid.

Community Health mixed

Franklin, Tenn.-based hospital operator Community Health Systems’ issues were mixed as they have been all week, market sources said.

On Thursday, Santdard & Poor’s lowered the company’s corporate credit rating and affirmed a negative outlook.

On Wednesday, the company announced the final results of exchange offers for three series of notes issued by its subsidiary CHS/Community Health Systems, Inc. The company said it received valid tenders for $1,770,337,000 in total, calling the offering oversubscribed.

The 7 1/8% notes due 2020 jumped up about 6 points to close at around 92 bid. The 6 7/8% notes due 2022 shaved off ¼ point to close at 55 bid.

On Thursday, the 7 1/8% notes were level and the 6 7/8% notes gained ¾ point.

Frontier mixed

Norwalk, Conn.-based wireline name Frontier Communications’ issues were mixed, traders said, in trading the day after Thursday’s announcement that CFO R. Perley McBride would be resigning from the company on Aug. 31. President and chief executive officer Daniel McCarthy praised McBride for his work managing the company’s debt, including making improvements to credit agreements and retiring $1.6 billion owing.

Recently, the company failed to garner a satisfactory bid in an auction for its Florida assets.

Frontier’s 7 5/8% notes due 2024 dropped about ¼ point to close at 72 ½ bid. Its 10½% notes due 2022 rose about ¼ point to close at around 92¾ bid. Its 11% notes due 2025 lost about 1¼ points to close at 82¾ bid.

On Thursday, the 7 5/8% notes fell about ¼ point, the 10½% notes lost about 3¼ points and the 11% notes rose about ¼ point.

Volume names trade

Luxembourg-based satellite communications company Intelsat notes declined. Last week, the company announced it planned to buy back Intelsat (Luxembourg) SA 7¾% senior notes due 2021.

The 7¾% notes due 2021 shaved off about 2¼ points to close at around 92¼ bid. The 8 1/8% notes due 2023 lost about 2½ points to close at around 79 bid.

Those declines follow smaller losses on Thursday and large gains on Wednesday.

The 8 1/8% notes were down about ½ point on Thursday to 81¼ after rising more than 4 points on Wednesday.

Intelsat “has been on a tear over the past two months,” a market source said on Theusday.

After a steady rise, the 8 1/8% notes jumped 4½ points on Wednesday alone.

The pull-back on Thursday was most likely the result of holders cashing in on some profits, the source said.

California Resources up

Los Angeles-based independent oil and gas name California Resources saw its issues gain with oil futures.

The 6% notes due 2024 added about 1¾ points to close at around 83 bid. The 8% notes due 2022 rose 2 points to close at 91 bid.

Lafayette, La.-based offshore energy transportation name PHI’s paper improved. Last Friday, the company announced a cash tender offer to purchase any and all of its $500 million in outstanding 5¼% senior notes due 2019.

The 5¼% paper due 2019 shot up about 1 point in trading Friday to close at around 98½ bid.

“Today was pretty light outside of what’s been moving all week,” a trader said. “There was some movement in energy, but other than that the week ended like it started.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.