QVC owner’s bonds under pressure; Endo edges up; bankrupt Talen Energy paper declines

By Cristal Cody

Tupelo, Miss., May 17 – Qurate Retail Inc.’s notes are treading closer to their lows from the pandemic throes of March 2020 with the paper down about 15 points so far in May.

The shopping network owner’s 8½% senior debentures due 2029 (B2/B) declined over 1¾ points during Tuesday’s session.

Market tone overall was stronger as stocks climbed on Tuesday with volatility remaining low.

The iShares iBoxx High Yield Corporate Bond ETF softened 7 cents to $76.63.

Endo International plc’s 7½% senior secured notes due 2027 (B3/B-) caught the bulk of attention in the distressed secondary market on Tuesday with the notes edging higher.

Talen Energy Supply LLC’s bonds were finishing the day down about 1¾ points to 2 points and trading in the low 50s since the company filed for Chapter 11 bankruptcy a week ago.

Qurate paper drops

Qurate Retail’s 8½% senior debentures due 2029 (B2/B) remained pressured on Tuesday as the paper went out over 1¾ points lower on the day at 76½ bid, a market source said.

The issue has dropped from trading at the 91 bid range in April since the company announced a first-quarter loss and soft revenue at the start of May.

The company’s paper had recovered from sinking to a low of 62¼ bid in March 2020 to trading in the 115½ bid range in September.

On Monday, Qurate reported the payment of a semi-annual interest payment and a regular additional distribution on its 4% senior exchangeable debentures due 2029 that were issued by subsidiary Liberty Interactive LLC.

The company also said Monday it will hold a virtual annual stockholders meeting on June 14.

Qurate Retail, formerly known as Liberty Interactive Corp., is a West Chester, Pa.-based media company that operates retailer brands including QVC and HSN.

Endo edges higher

Endo Finance LLC’s 7½% senior secured notes due 2027 (B3/B-) traded slightly higher on Tuesday at 77 bid on secondary action totaling $20 million, a source said.

The issue was down 1/8 point on Monday at 76 5/8 bid on $18 million of volume.

Endo’s paper has been weak since the company announced earlier in the month a first-quarter loss and limited financial guidance with a projected second-quarter loss.

The Dublin-based pharmaceuticals maker has settled several opioid-related lawsuits year to date, including with Alabama, San Francisco and Florida.

Talen Energy lower

Talen Energy’s notes have dropped about 10 points over the past week but remain up from levels ahead of the company’s Chapter 11 bankruptcy filing a week ago, a source said.

Talen’s 10½% senior notes due 2026 (C/D/C) softened 1¾ points to 52 bid on Tuesday. Trading was light with $1 million of volume reported.

Talen’s 6½% senior notes due 2025 (C/D/C) declined 2 points over the day to 52½ bid on stronger volume totaling $4 million.

The issue remains up from the 41 bid range ahead of the company’s Chapter 11 filing but has given back some gains after climbing to 62¼ bid a day after the company reported the restructuring.

The Woodlands, Tex., and Allentown, Pa.-based power generation and infrastructure company plans to confirm a Chapter 11 plan of reorganization in approximately six months.

Distressed returns weak

S&P U.S. High Yield Corporate Distressed Bond index softened at the start of the week.

One-day total returns were minus 0.13% on Monday, down from 0.23% on Friday but improved from minus 1.41% in the same session a week ago.

Month-to-date total returns declined to minus 8.04% versus minus 7.92% on Friday and minus 5.29% in the week-ago session.

Year-to-date index returns fell to minus 15.29% on Monday from minus 15.18% on Friday and minus 12.76% a week ago.

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