PG&E notes under pressure as creditor fight continues; L Brands eyed in retail sector

By James McCandless

San Antonio, Dec. 24 – Though trading was light in the distressed debt space, newsmakers of the last week continued to remain in focus.

PG&E Corp.’s notes were under pressure as the company and a large creditor group remain at odds in its restructuring process.

The 6.05% notes due 2034 dipped ¼ point to close at 106¼ bid.

As the San Francisco-based bankrupt electric utility works to come to a restructuring agreement that satisfies its stakeholders, a large group of creditors continues to oppose them at every turn.

Most recently the Elliott Management-led group said that it was willing to pay a group of wildfire victims $13.5 billion in cash.

The firm argues that the deal is better than the company’s half cash, half equity deal that was reached last week.

In the retail space, L Brands, Inc.’s issues moved higher as it continues to feel the heat from an activist investor seeking sweeping changes.

The 6 7/8% senior notes due 2035 rose ½ point to close at 90½ bid. The 5¼% senior notes due 2028 gained 1¼ points to close at 95 bid.

Last week, amid a continuing push for improvement from an activist investor, Moody’s Investors Service issued a downgrade for the Columbus, Ohio-based department store name.

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