Distressed bonds bounce back; China Evergrande, Tianji, PBF up; Talen soft on day

By Cristal Cody

Tupelo, Miss., Sept. 22 – China Evergrande Group’s bonds extended a rally on Wednesday, adding 2¾ points to 6 3/8 points, as the company tries to stave off a default.

China offshore real estate bonds were mostly better following reports Evergrande subsidiary Hengda Real Estate Group Co. Ltd. arranged to make an interest payment on an onshore bond due Thursday.

“On the back of news they’re paying the interest and a pending restructuring from the government, China Evergrande Group’s 8¼% 2022 notes went from 25ish to 30ish,” a source noted.

Dollar bonds from Tianji Holding Ltd., the Hong Kong-based overseas financing arm of Hengda Real Estate Group, jumped nearly 5 points to about 7¾ points.

Market tone remained better on Wednesday after the Federal Reserve left rates unchanged but signaled it may taper bond purchases soon.

PBF Holding Co. LLC’s notes were about 1½ points to 2½ points better.

The 6% senior notes due 2028 (B3/B/) improved 2½ points to 61¾ bid on more than $13.5 million of secondary volume.

Talen Energy Supply LLC’s bonds gave back some gains but remained mostly stronger.

Talen’s 10½% senior notes due 2026 (B3/CCC/B-) were ½ point softer on Wednesday at 56¼ bid but are now trading with a 56 handle after the bonds added 7¼ points on Tuesday.

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