United Airlines notes vary as layoffs expected; Bombardier up in manufacturing space

By James McCandless

San Antonio, Aug. 27 – The Thursday session in the distressed debt market was focused on travel and manufacturing names.

United Airlines Holdings, Inc.’s notes varied in direction after the company warned of more layoffs if federal aid is not approved.

The 5% senior notes due 2024 held level to close at 88 bid. The 4¼% senior notes due 2022 shaved off ¼ point to close at 91 bid.

On Thursday, the Chicago-based airline announced that without a new round of payroll aid from the federal government, 2,850 pilot jobs would be cut.

The $25 billion in payroll assistance passed by Congress in March is set to expire in October unless another bill is passed.

Manufacturing name Bombardier Inc.’s paper gained amid headlines about layoffs in its Canadian operations.

The 7 7/8% senior notes due 2027 tacked on ½ point to close at 73½ bid. The 7½% senior paper due 2025 garnered 1¼ points to close at 75 bid.

The gains came for the Montreal-based air and rail manufacturer amid headlines surrounding impending layoffs at a Canadian facility.

The company announced on Wednesday that more than 200 employees in its Ontario plant would be laid off over the next several months heading into 2021.

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