CBL notes jump as restructuring deal reached; Valaris quoted up after bankruptcy filing

By James McCandless

San Antonio, Aug. 19 – The distressed debt market was awash with fresh restructuring and bankruptcy news on Wednesday.

CBL & Associates Properties, Inc.’s notes jumped higher after the company reached a restructuring agreement with lenders.

The 5¼% senior notes due 2023 shot up 12¼ points to close at 36¼ bid. The 4.6% senior notes due 2024 grabbed 14½ points to close at 36½ bid.

On Wednesday morning, the Chattanooga, Tenn.-based real estate investment trust announced that it had entered into a restructuring agreement with noteholders representing more than 57% of the operating partnership’s 2023 notes, 2024 notes and the 5.95% senior unsecured notes due 2026, Prospect News reported.

The plan eliminates about $1.4 billion of unsecured notes in exchange for the issuance of $500 million of new senior secured notes due June 2028, plus about $50 million of cash and 90% of the new common equity for unsecured holders.

Talks with its senior secured lenders are ongoing.

The company says that it expects to file for Chapter 11 bankruptcy no later than Oct. 1.

In the oil and gas space, Valaris plc’s paper improved after the company announced that it was filing for Chapter 11 bankruptcy.

The 7¾% senior notes due 2026 gained ¾ point to close at 5¾ bid.

© 2015 Prospect News.
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