Hertz’s new issue boosts existing bonds; Intelsat lower ahead of exchange; Atwood active

By Colin Hanner

Chicago, May 31 – Movement trended higher in the distressed debt market for Hertz Corp.’s existing bonds on Wednesday, a market source said, as bondholders prepared for the rental-car company’s upsized new issue, which priced late in the day.

An expected offering of five-year second-lien notes for Hertz was upsized to $1.25 billion on Wednesday afternoon, and existing issuances were up more than 1 point across the board, market sources said.

In energy, offshore drilling contractor Atwood Oceanics, Inc. remained active a day following a takeover from Ensco plc, which acquired the Houston-based offshore drilling contractor for $839 million in an all-stock transaction, the companies said in a news release on Tuesday.

Atwood’s bonds, however, were nearly unchanged, while Ensco’s bonds were down a round number.

The downturn in oil continued into Wednesday, though steeper losses plagued crude oil futures. Noble Holdings International Ltd. was lower, as was California Resources Corp.

Ahead of its exchange offer deadline on Wednesday at midnight ET, Intelsat SA was down and active, stirring speculation that another pushback may not occur.

Franklin, Tenn.-based hospital group, Community Health Systems, Inc., which divested five hospitals after the close on Tuesday, was down fractionally in one of its issues, a market source said. Other hospital groups saw some activity, though movement did not stretch far in either direction.

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