Valeant Pharmaceuticals weighs asset sales; Intelsat reduces tender pricing; Caesars busy

By Stephanie N. Rotondo

Seattle, May 18 – Trading in the distressed debt space pared down a bit Wednesday, as a new high-yield bond deal from Petróleo Brasileiro SA dominated the broader high-yield space.

On Tuesday, the state-controlled oil company sold $6.75 billion of five- and 10-year bonds. Petrobras also said that it planned to buy back up to $3 billion of debt maturing in 2018.

But in distressed dealings, Valeant Pharmaceuticals International Inc. was mostly better on news the company was considering asset sales in an effort to cut its debt.

The company said it is looking into the possibility of selling off its dermatology business, as well as its Provenge drug, a treatment for advanced prostate cancer.

Also active were Intelsat SA bonds, though they were trending lower on the day. The weakness came as the company extended its previously announced cash tender and also slashed pricing for the exchange.

One trader saw “a bunch of trades” in the 7¼% notes due 2019 – not an issue included in the tender. He said the paper fell almost half a point to 75½.

Another notable name for the day was Caesars Entertainment Corp. Activity in that name has been limited since Caesars Entertainment Operating Co. filed for bankruptcy in January 2015. The uptick in trading came as the parent company said it would contribute about $4 billion to the bankrupt unit’s restructuring effort.

© 2015 Prospect News.
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