Toys ’18 paper jumps on Asia IPO talk; Bombardier flies on Airbus news; hospitals rebound

By Paul Deckelman

New York, Oct. 16 – Distressed-debt traders said that activity in some recently pressured topical names was the big feature in Tuesday’s market, even overshadowing primaryside activity in the larger high-yield bond arena.

They said that Toys ‘R’Us, Inc. was the big winner on the day, particularly its recently battered 2018 notes, which zoomed by some 15 points on news reports the retailer – currently restructuring under Chapter 11 – may do an initial public offering for its burgeoning Asian business, which is not covered by the bankruptcy filing.

Bombardier Inc.’s several issues of notes dominated the day’s Most Actives list, firming solidly on the news that the Canadian aircraft manufacturer –whose bonds were recently in retreat on a threat by the United States Commerce Department to slap heavy tariffs on its new C-Series jets to be sold to U.S.-based carriers such as Delta Air Lines – will sell a majority stake in its C-Series operation to European aerospace giant Airbus; that transaction may also get around that tariff threat since Airbus plans to actually do the final assembly work on planes to be sold in the U.S. at its existing facility in Alabama.

And hospital names like Community Health Systems, Inc., Tenet Healthcare Corp. and HCA Inc. continued to bounce back from the losses the sector suffered late last week on the prospect of changes to the Affordable Care Act in the U.S.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.