Hertz notes decline after layoff announcement; Valaris bonds drop on bankruptcy talk

By James McCandless

San Antonio, April 21 – Distressed debt was dragged down with equities on Tuesday as energy prices continued to weaken.

Hertz Global Holdings, Inc.’s notes declined after news broke that the company will lay off 10,000 workers due to market weakness.

The 5½% senior notes due 2024 were docked 2 points to close at 35¾ bid. The 6¼% senior notes due 2022 dropped 9¼ points to close at 42 bid.

After the close on Monday, news broke that the Estero, Fla.-based vehicle rental company would lay off 10,000 workers due to the market weakness spurred on by the coronavirus pandemic.

In a Securities and Exchange Commission filing, the company said that it would incur about $30 million in employee termination costs.

Elsewhere, in oil and gas, Valaris plc’s issues dropped as reports indicated that the company is preparing to talk with creditors about restructuring.

The 5.2% senior notes due 2025 lost 2 points to close at 8 bid. The 7¾% senior notes due 2026 shaved off ¾ point to close at 9 bid.

During the Tuesday session, reports indicated that the London-based offshore driller is preparing to start talks with creditors over a potential restructuring plan.

The company is considering filing for Chapter 11 bankruptcy amid a collapse of energy prices as supply exceeds demand.

© 2015 Prospect News.
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