Bausch Health pharma bonds mixed, secured notes flat; Transocean higher; Party City up

By Cristal Cody

Tupelo, Miss., Sept. 7 – Bausch Health Cos. Inc.’s paper remained strongly traded on Wednesday with the paper mostly mixed on the day.

Bausch’s 6 1/8% secured notes due 2027 (B3/B/BB-) were unchanged on $15 million of secondary action.

Junk tone improved on Wednesday, while stock indices climbed more than 1%. The Nasdaq closed up 2.14%.

The iShares iBoxx High Yield Corporate Bond ETF added $1.07, or 1.44%, by the day’s end to $75.18.

Market volatility waned with the CBOE Volatility index down 8.44% at 24.64.

Oil prices weakened during the session.

West Texas Intermediate crude oil benchmark futures for October deliveries settled down $4.94 to $81.94 a barrel.

Transocean Inc.’s 8% debentures due 2027 (C/CCC-) rallied over 2 points in mostly light secondary trading.

In other distressed names active in the secondary market on Wednesday, Party City Holdings Inc.’s 8¾% senior secured notes due 2026 (Caa1/CCC+) traded 1¾ points better on $9 million of volume.

Bausch notes mixed

Bausch’s paper went out mixed in strong trading action on Wednesday, a source said.

Bausch’s 6 1/8% secured notes due 2027 (B3/B/BB-) were unchanged at 73 bid on $15 million of volume.

The company’s 5% senior notes due 2028 (Caa3/CC/C) traded more than ¾ point higher at 35¾ bid on $10 million of notes changing hands.

Meanwhile, Bausch’s 5% senior notes due 2029 (Caa3/CC/C) fell ¾ point to 36 bid on $3 million of volume.

The company’s 6¼% senior notes due 2029 (Caa3/CC/C) also dropped ¼ points to 34½ bid on Wednesday on $2 million of trading.

Bausch is conducting a debt restructuring to replace existing senior debt with new first-lien and second-lien secured bonds.

The Laval, Quebec-based pharmaceutical company plans to spin off Bausch + Lomb.

Transocean gains

In the distressed energy space, Transocean’s 8% debentures due 2027 (C/CCC-) rallied over 2 points on Wednesday to a quote of 75 bid, a source said of the Vernier, Switzerland-based offshore driller’s most active issue seen trading.

Secondary activity was light on $1 million of volume.

Party City improves

Party City’s 8¾% senior secured notes due 2026 (Caa1/CCC+) traded 1¾ points better on Wednesday at 66 bid in fairly strong trading action, according to a market source.

Secondary volume totaled $9 million.

The Rockaway, N.J.-based retailer sold $750 million of the notes in 2021 at par.

Distressed returns up

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns were higher on Tuesday at 0.15%, compared to 0.24% on Friday and minus 0.71% in the same session a week ago.

Month-to-date total returns on Tuesday were minus 0.9% versus minus 1.05% on Friday and minus 0.67% on Thursday.

Year-to-date total returns tightened to minus 21.81% on Tuesday from minus 21.92% on Friday but softened from minus 20.79% in the week-ago session.

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