J.C. Penney notes eyed after sale agreement; Transocean active as tender offer ends

By James McCandless

San Antonio, Sept. 10 – The distressed debt space entered the back half of the week reacting to shifting ground in retail and energy.

J.C. Penney Co., Inc.’s notes diverged in direction after the company came to an agreement to be sold to two mall owners.

The 5 7/8% senior secured notes due 2023 dipped 7½ points to close at 30½ bid. The 7.4% senior notes due 2037 held level to close at ¾ bid.

Late Wednesday, the Plano, Tex.-based department store chain reached an agreement in principle to sell its retail and operating assets to Brookfield Property Group and Simon Property Group for $1.75 billion through a court-supervised sale process, Prospect News reported.

The company said it plans to seek approval of a disclosure statement and confirmation of a plan of reorganization in parallel with the sale process.

Meanwhile, Transocean Ltd.’s paper varied after announcing the conclusion of an 11-series tender offer.

The 7½% senior notes due 2031 closed level at 17 bid. The 6½% senior notes due 2020 rose 2½ points to close at 83¾ bid.

After the Wednesday close, the Steinhausen, Switzerland-based contract driller’s wholly owned subsidiary, Transocean Inc., announced final results of its offer to exchange 11 series of existing notes for 11½% senior guaranteed notes due 2027.

© 2015 Prospect News.
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