Talen notes trade mixed; Transocean up; Endo dips; distressed traders wait for ‘pain’

By Cristal Cody

Tupelo, Miss., March 25 – Distressed bond secondary action remained fairly active on Friday as the financial markets ended mostly softer.

Talen Energy Supply LLC’s senior secured and unsecured notes were busy with “$59 million traded across the board,” a source said.

Talen’s 10½% senior notes due 2026 (Caa2/CCC/CCC) rose ¼ point to 31¾ bid on over $12.7 million of volume.

Transocean Inc.’s notes were up about 7/8 point to over 1 point as oil prices ended the day higher, a market source said.

In the distressed pharmaceuticals space, Endo International plc’s 6% senior notes due 2028 (Caa3/CCC-) softened about ¼ point to 56 bid, going out 1 7/8 points lower on the week, according to a market source.

Mallinckrodt plc’s paper was mostly unchanged in steady trading over the day.

The company’s 5½% senior notes due 2025 were flat at 49¼ bid on over $12 million of volume on Friday.

Elsewhere, the 7 7/8% senior notes due Oct. 1, 2022 (C/C) from Midas Intermediate Holdco II LLC, doing business as Service King, were quiet after rallying about 6¾ points to 96¾ bid on Thursday.

“People are not doing much,” a trader said. “Some guys are just waiting with all the movement in interest rates. The distressed guys are waiting for pain.”

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