GEO, CoreCivic notes trade mixed on downgrades; energy soft; Hertz, Mallinckrodt up

By Cristal Cody

Tupelo, Miss., March 25 – GEO Group Inc.’s bonds edged up on Thursday on the heels of a second downgrade.

The company’s 5 1/8% senior notes due 2023 (B1/B-) rose ¼ point to 88¾ bid, according to a market source. GEO’s 6% senior notes due 2026 (B2/B-) also improved ½ point to 72 bid.

Moody’s Investors Service said Thursday it dropped the company’s rating to B2 from B1, citing a potential revenue and earnings loss as federal agencies cease using private prison operators.

Moody’s also downgraded CoreCivic, Inc. to Ba2 from Ba1 on Thursday.

CoreCivic’s 4¾% notes due 2027 (Ba2/BB-) softened ½ point to 89 bid in secondary trading on Thursday, a market source said.

Overall market tone was mixed, and oil futures declined during the session after recovering on Wednesday.

Offshore driller Transocean Inc.’s 7½% senior notes due 2026 (Ca) fell 1¾ points to 60¾ bid.

Gran Tierra Energy Inc.’s 7¾% senior notes due 2027 (/B-/CCC) declined more than 1 point to the 83 bid area.

Separately, Hertz Corp.’s 5½% notes due 2024 were quoted up 3 points at 95 bid on Thursday afternoon, a source said.

And Mallinckrodt plc’s bonds continued to climb higher on Thursday, a market source said. The company’s 5¾% senior notes due 2022 jumped 3 points to 67 bid.

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