PG&E notes gain after company exits bankruptcy; Hertz trades up on analyst upgrade

By James McCandless

San Antonio, July 2 – On a half-day to round out a short Fourth of July week, utilities and travel names took up much of the attention in the distressed debt market.

PG&E Corp.’s notes gained ground after the company announced that it had exited Chapter 11 bankruptcy.

The 2.1% notes due 2027 picked up ¾ point to close at 99¾ bid. The 2½% notes due 2031 rose 1 point to close at 99¼ bid.

Late Wednesday, the San Francisco-based electric utility announced that it had emerged from Chapter 11, completing its restructuring process and implementing the plan of reorganization that was confirmed in bankruptcy court on June 20, Prospect News reported.

Car rental name Hertz Global Holdings, Inc.’s issues moved up after receiving an analyst upgrade backed by conditions in the used car market.

The 6¼% senior notes due 2022 improved by ¾ point to close at 32¼ bid. The 5½% senior notes due 2024 gained 1 point to close at 33 bid.

On Thursday morning, the Estero, Fla.-based car rental company received an analyst upgrade from Morgan Stanley.

The analyst said in a note that a combination of economic factors has led to better-than-expected used and new car sales markets.

© 2015 Prospect News.
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