L Brands notes decline on asset sale uncertainty; PG&E active as CEO eyes departure

By James McCandless

San Antonio, April 22 – The distressed debt market saw shifting ground in the retail space on Wednesday.

L Brands, Inc.’s notes dipped after reports indicated that the proposed buyer of its Victoria’s Secret brand sought to terminate the deal.

The 6 7/8% senior notes due 2035 fell 5¾ points to close at 68½ bid. The 6 5/8% senior notes due 2021 declined by 5½ points to close at 85 bid.

During the Wednesday session, news broke that the prospective buyer of the Columbus, Ohio-based retail company’s majority share in its Victoria’s Secret segment is trying to terminate the deal.

Outlining its reasons for wanting to nix the agreement, private equity firm Sycamore Partners said that the company’s value has been reduced by its failure to pay rent and its furloughing of its retail workers, arguing that the Covid-19 pandemic is not a sufficient defense.

L Brands has called the move “invalid.”

Meanwhile, utilities name PG&E Corp.’s paper was active but unchanged after the chief executive officer announced his eventual retirement.

The 6.05% notes due 2034 held level at 110½ bid.

On Wednesday morning, the San Francisco-based bankrupt electric utility announced that CEO William Johnson would retire from the position on June 30, the company’s target for its bankruptcy exit.

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