Windstream notes mixed on note exchange; Talen Energy Supply issues improve despite ratings downgrade

By James McCandless

San Antonio, June 18 – The beginning of the week in the distressed debt market saw pockets of activity in volume stalwarts and news-driven names.

Windstream Holdings, Inc. notes were mixed on Monday after the company announced that it would issue new second-lien notes in exchange offers for multiple series of existing notes.

Talen Energy Supply, LLC issues gained despite a ratings downgrade from Moody’s Investors Service.

PHI, Inc. paper was heavily traded but level. Last Friday, the company announced a cash tender offer for the $500 million in outstanding 5¼% senior notes due 2019.

Intelsat SA notes were mixed. Last Monday, the company announced that it would buy back its 7¾% notes due 2021. Frontier Communications Corp. issues were mixed after a recent failed auction for its Florida assets. PetSmart, Inc. paper declined amid a spat with creditors.

Windstream mixed

Little Rock, Ark.-based network communications solutions name Windstream’s notes were mixed, according to traders, after the company announced that it is offering new second-lien notes in exchange offers for multiple series of its existing senior notes.

The exchanges are being carried out by the company’s subsidiaries Windstream Services, LLC and Windstream Finance Corp. (see related story elsewhere in this issue).

“These notes saw some movement but less than we anticipated,” a trader said. “But that’s the way it goes on a Monday.”

The 7¾% notes due 2021 gained about 2 points to close at around 83½ bid. The 7¾% notes due 2020 were level at around 92 bid.

Talen gains

Talen Energy Supply, a subsidiary of Allentown, Pa.-based independent power producer Talen Energy saw paper gain, traders reported, after Moody’s Investors Service lowered its corporate family rating, its probability of default rating and others (see related story elsewhere in this issue).

“They were also active with the rest of the energy sector with oil futures picking up a few points today,” a trader said.

The 6.5% notes due 2025 jumped up about 2¼ points to close at 78¾ points.

PHI level

Lafayette, La.-based offshore energy transportation name PHI issues were in high volume but level, market sources confirmed, after the company’s Friday announcement of a cash tender offer to purchase any and all of its $500 million in outstanding 5¼% senior notes due 2019. The offer expires on July 17.

The company plans to purchase the notes using the net proceeds from a private placement of up to $500 million in five-year senior secured notes.

The 5¼% notes due 2019 were level at 98½ bid.

On Friday, the 5¼% notes gained 2¾ points.

Volume names trade

Luxembourg-based satellite communications company Intelsat notes were mixed. Last Monday, the company announced that it would buy back its Intelsat (Luxembourg) SA 7¾% senior notes due 2021.

The 7¾% notes due 2021 shaved off about ¼ point to close at around 90¾ bid. The 8 7/8% notes due 2023 rose about ½ point to close at around 79½ bid.

Norwalk, Conn.-based wireline name Frontier Communications issues were mixed. The company’s recent auction for its Florida assets failed to produce a satisfactory bid.

The 7 5/8% notes due 2024 lost about ½ point to close at around 73½ bid. The 10½% notes due 2022 traded up about ¼ point to close at around 93 bid. The 11% notes due 2025 fell about ½ point to close at around 84 bid.

Phoenix-based pet supplies retailer PetSmart paper declined. The company is reeling from a contentious week with creditors after the company moved 36.5% of its stake in valuable e-commerce arm Chewy.com to private entities. Various creditor groups are currently exploring options to protect collateral.

The 5 7/8% paper due 2025 shed about 1½ points to close at around 75½ bid. The 8 7/8% paper due 2025 lost ½ point to close at 62¼ bid.

© 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.