Wesco Aircraft notes bounce off lows; GTT inks restructuring agreement; Transocean up

By Abigail W. Adams

Portland, Me., Sept. 2 – Volume remained light in the distressed debt secondary space on Thursday with the already lethargic pace of the bond market further hampered by the destruction Hurricane Ida wrought on the East Coast.

However, several distressed credits improved amid the thin liquidity.

Transocean Inc.’s junk bonds were active and on the rise alongside crude oil futures.

The offshore drilling contractor’s 6.8% senior notes due 2038 rose 1 point to 57.

The notes have climbed 4 points on the week.

Wolverine Escrow’s junk bonds (Wesco Aircraft Holdings Inc.) remained in focus following a multipoint slide the previous session.

The shorter duration tranche was bouncing off its lows in active trading while the longer duration tranche was largely unchanged.

The 8½% senior notes due 2024 rose about ½ point. They were changing hands in the 90½ to 90¾ context heading into the market close, a source said.

However, the 9% senior notes due 2026 were largely unchanged in the 90 to 90¼ context.

GTT Communications, Inc.’s 7 7/8% notes due 2024 rose after the company announced it had reached a restructuring agreement with creditors and will file a pre-packaged bankruptcy case.

The 7 7/8% notes traded up to 15½ on Thursday in light volume.

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