U.S. Steel notes weaken after CFO departure; PG&E lower amid exclusivity termination

By James McCandless

San Antonio, Oct. 9 – Wednesday in the distressed debt market focused on a handful of names, including United States Steel Corp., which saw its chief financial officer resign, and PG&E Corp., where power outages and a court ruling fueled some selling.

U.S. Steel’s 6 7/8% senior notes due 2025 dipped ¼ point to close at 87½ bid. The 6¼% senior notes due 2026 fell 2 points to close at 80½ bid.

After the close on Tuesday, the Pittsburgh-based steel manufacturer announced that CFO Kevin Bradley would resign from his position.

Senior vice president Christine Breves is expected to assume the role.

The company also said that it would be instituting cost-cutting measures at the beginning of next year, with the expressed goal of saving around $200 million by 2022.

Meanwhile, PG&E’s 6.05% notes due 2034 shaved off ¼ point to close at 109¾ bid.

The San Francisco-based bankrupt electric utility has seen a rash of negative headlines over the last few days as it prepares to temporarily cut power to around 500,000 homes and businesses in California.

Late Wednesday, news also broke that a bankruptcy judge had terminated PG&E’s exclusive right to put forward a restructuring plan, opening the door for a creditor proposal to gain traction.

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