Windstream gets a default notice; CRC, Denbury remain firm; Toys’ debt continues to rise

By Stephanie N. Rotondo

Seattle, Sept. 25 – The distressed debt market was “pretty quiet,” a trader said Monday.

However, he opined that Tuesday could bring a pick-up in activity, particularly in Windstream Holdings Inc. bonds.

He noted that the company had filed an 8-K late in the day that said that a holder of over 25% of the company’s 6 3/8% notes due 2023 was claiming the company was in default.

The company denies the allegations.

Meanwhile, California Resources Corp.’s 8% second-lien notes due 2022 continued to be “better,” a trader said.

The trader said the bonds got as high as 66½.

Another market source pegged the paper at 66¼, up 3½ points.

Sector peer Denbury Resources Inc. was also on the rise, as its 6 3/8% notes due 2021 added a point to close at 56½.

There hasn’t been any fresh news out on either oil and gas producer recently, but the bonds – as well as the energy sector as a whole – have been climbing higher, helped by a recent rise in domestic crude prices.

Among other notable distressed names, Toys ‘R’ Us Inc.’s 7 3/8% notes due 2018 continued to tick upward.

One trader quoted the issue in a 31 to 32 context. Another saw the bonds inching up half a point to 32.

The bonds are now trading flat, or without accrued interest, given the company’s bankruptcy filing on Sept. 19.

© 2015 Prospect News.
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