Bed Bath & Beyond lower on transaction news; Superior Energy eyed as exchange starts

By James McCandless

San Antonio, Jan. 6 – The distressed debt market opened a new week with the focus on newsmakers in retail and energy.

Bed Bath & Beyond Inc.’s notes ended lower after the company announced a $250 million sale-leaseback transaction for some of its real estate.

The 5.165% senior notes due 2044 lost 1¼ points to close at 73¾ bid. The 4.915% senior notes due 2034 shaved off ¼ point to close at 79¼ bid.

On Monday morning, the Union, N.J.-based department store chain announced that it had completed a sale-leaseback transaction to an affiliate of private equity firm Oak Street Real Estate Capital.

The deal, worth $250 million, is for approximately 2.1 million square feet of commercial space that the company will continue to occupy under long-term leases.

“They’re melting like an ice cream cone,” a trader said. “They’re going to be systematically selling assets for much of this year.”

Part of the sale included the company’s headquarters.

Elsewhere, in oil and gas, Superior Energy Services, Inc.’s paper diverged as it starts an exchange offer.

The 7 1/8% senior notes due 2021 picked up ¾ point to close at 86½ bid. The 7¾% senior paper due 2024 fell 1½ points to close at 67½ bid.

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