GTT notes jump on asset sale news; Transocean paper trades mixed in energy space

By James McCandless

San Antonio, Sept. 8 – At the beginning of a holiday-shortened week, the distressed debt market honed in on the telecom and energy sectors.

GTT Communications, Inc.’s notes jumped upward after news broke that it was nearing a deal to sell about $2 billion in assets.

The 7 7/8% senior notes due 2024 pushed higher by 13¼ points to close at 50¼ bid.

On Tuesday morning, news broke that the McLean, Va.-based cloud networking services provider is close to closing a deal with a consortium of buyers to sell its European fiber assets.

Macquarie Group Ltd., 3i Group plc and AustralianSuper are in advanced negotiations to buy the assets for more than $2 billion.

Meanwhile, in oil and gas, Transocean Ltd.’s paper varied in direction after extending an exchange offer.

The 7½% senior paper due 2031 tacked on ½ point to close at 18 bid. The 6 1/8% senior secured paper due 2025 closed level at 88½ bid.

The Steinhausen, Switzerland-based contract driller announced that wholly owned subsidiary Transocean Inc. received over $1.5 billion of validly tendered exchange notes as of Sept. 4 under its previously announced offers to exchange some existing notes for up to $750 million of new 11½% senior guaranteed notes due 2027, Prospect News reported.

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