Valaris notes decline after board settlement; Tenneco lower amid continued review

By James McCandless

San Antonio, Jan. 27 – Distressed debt trading was marked by overarching negativity on Monday as worries about the coronavirus spread.

Valaris plc’s notes declined after the company announced a settlement with a large shareholder over the makeup of its board of directors.

The 7¾% senior notes due 2026 lost 3 points to close at 47½ bid. The 8% senior notes due 2024 dipped 1 point to close at 60 bid.

Early Monday, the London-based contract driller announced that it had reached a settlement with large shareholder Luminus Management over the composition of its board of directors.

As part of the settlement, Valaris appointed Luminus executive Adam Weitzman to its board in exchange for the fund maintaining its 18.7% ownership and supporting the company’s board member candidates in an upcoming shareholder meeting.

In the automotive space, Tenneco Inc.’s paper shifted lower as the company continues a strategic alternatives review with a new adviser.

The 5% senior notes due 2026 shaved off ¾ point to close at 87¾ bid.

In an announcement Monday morning, the Lake Forest, Ill.-based auto parts producer said that its strategic alternatives review was ongoing and added Lazard as an independent financial adviser.

© 2015 Prospect News.
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