Talen Energy mixed, CDS spreads come in; Rite Aid mostly soft; Diamond Sports steadies

By Cristal Cody

Tupelo, Miss., April 21 – Bonds were mixed in the distressed space on Thursday as the VIX climbed over 10% and stock indices dropped over 1%.

Talen Energy Supply LLC’s senior notes were trading about 3 1/8 points to over 5 points higher on the week, a source said.

Talen’s credit default swap spreads also came in over 3,000 basis points this week after widening heavily in March as reports emerged the company is in restructuring talks.

Talen’s 10½% senior notes due 2026 (C/CC/CCC) softened to 36¼ bid, down 1¾ points on the day but up about 3 1/8 points this week.

Rite Aid Corp.’s notes are trading mostly softer since the company reported heavy fourth-quarter losses a week ago.

The company’s 8% senior secured notes due 2026 (B3/CCC/BB-) fell about ½ point to the 87½ bid range, over 3 points lower this week, a source said.

The drug retailer’s CDS spreads also widened over the week.

Diamond Sports Group LLC’s secured and unsecured notes went out mostly unchanged in light secondary supply but trading stronger on the week.

Diamond Sports’ 6 5/8% senior notes due 2027 (Ca/CC) were quoted at 22½ bid, flat from Wednesday but about 2¼ points higher this week.

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