Washington Prime, Diamond Sports notes improve; Shelf Drilling, Gran Tierra trade up

By Cristal Cody

Tupelo, Miss., May 6 – Washington Prime Group, LP’s bonds traded higher on Thursday following the company’s approval for an extended forbearance period regarding a missed note payment.

The company’s 6.45% notes due 2024 (C/D/C) added nearly 2¼ points to head out at 65 bid in thin secondary supply, a source said.

The bonds have improved from the 57 bid range in March but are still off the 73½ bid area seen in mid-February.

Washington Prime Group, Inc. disclosed in February that the operating partnership withheld a $23.2 million interest payment on the 6.45% notes that was due Feb. 15, 2021.

The company reported in an 8-K filing with the Securities and Exchange Commission on Wednesday that it has received approval to extend a forbearance agreement with lenders to May 12.

The Columbus, Ohio-based shopping center real estate investment trust said it is continuing to engage in negotiations and discussions with the forbearing noteholders and forbearing lenders to restructure its capital structure.

Diamond Sports higher

Diamond Sports Group LLC’s notes continued to gain in secondary trading on Thursday.

The 5 3/8% senior secured notes due 2026 (B2/CCC+) rose 2 5/8 points to 77¾ bid on $12 million of trading volume, a source said.

The notes are up 4½ points week to date.

Diamond Sports’ 6 5/8% senior notes due 2027 (Caa2/CCC-) rose 2¾ points to 57½ bid also on Thursday, a source said.

The bonds are trading about 3¼ points higher on the week.

Diamond Sports’ bonds have improved over the past two sessions after parent company Sinclair Broadcast Group, Inc. released better-than-expected first-quarter results on Wednesday.

As of March 31, Sinclair reported it has $12.54 billion of total debt, including $8.12 billion of debt from Diamond Sports.

In February, Sinclair reported soft guidance for the Chesapeake, Va.-based sports broadcast group along with an interest in liability management initiatives that could include a debt exchange or redemption.

Shelf Drilling stronger

Distressed energy paper was mixed on Thursday as oil prices softened, a source said.

North Sea Brent crude oil futures for July delivery fell 87 cents to settle at $68.09 a barrel.

West Texas Intermediate crude oil futures for June deliveries declined 92 cents to settle the day at $64.71 a barrel.

Shelf Drilling Holdings Ltd.’s 8¼% senior notes due 2025 (Caa3/CCC+) were seen late afternoon up 2½ points to 77¾ bid in light trading volume totaling $2 million.

Gran Tierra Energy Inc.’s 7¾% senior notes due 2027 (/B-/CCC) improved more than 1¾ points to the 86½ bid area on $1 million of paper traded.

Overall market tone was mixed.

The iShares iBoxx High Yield Corporate Bond ETF fell 3 cents to close at $87.27.

Mallinckrodt weak

In other distressed secondary trading on Thursday, bankrupt pharmaceuticals maker Mallinckrodt plc’s 5¾% notes due 2022 fell 1½ points to 61½ bid on $3 million of secondary volume, a source said.

The notes are down 6½ points week to date.

A hearing on Mallinckrodt’s Chapter 11 plan of reorganization and disclosure statement, filed in the U.S. Bankruptcy Court for the District of Delaware on April 20, is scheduled for May 26.

The company reported it has reached an agreement with a group of first-lien term lenders holding about $1.3 billion of its outstanding first-lien term loans to support its restructuring support agreement.

Mallinckrodt, which has principal offices in Dublin and St. Louis, filed for Chapter 11 bankruptcy on Oct. 12, 2020.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.