Walter bonds jump, converts slide on reorganization buzz; healthcare, retail names active

By Paul Deckelman

New York, Oct. 23 – Traders in distressed debt and the bonds of other underperforming companies and sectors saw a mixed bag of activity on Monday.

One of the big names was mortgage banking company Walter Investment Management Corp., which said that it is seeking restructuring support agreements from its lenders and expects to file a pre-packaged Chapter 11 reorganization plan next month.

Its straight junk bonds were heard by traders to have firmed smartly on that news – but its convertibles issues traded off.

Elsewhere, traders saw some activity in healthcare names such as pharmaceuticals maker Endo International plc, which firmed smartly, and hospital operator Tenet Healthcare Corp., whose bonds were mixed.

In the retailing space, Toys ‘R’ Us, Inc.’s recently active 2018 notes were little changed, on considerably less volume.

Traders also saw Sears Holdings Corp. paper continuing to gyrate around.

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