Telesat paper rallies after weak earnings report; Talen secured notes lower; Kronos up

By Cristal Cody

Tupelo, Miss., March 18 – Telesat Corp.’s distressed junk bonds rallied 6¼ points to 6½ points in heavy secondary action on Friday after the company reported fourth-quarter earnings plunged from the prior year.

Telesat Canada LLC’s 6½% senior notes due 2027 (Caa1/B) climbed 6½ points to 51½ bid on more than $23.7 million of secondary volume, a source said.

Telesat Canada’s 4 7/8% senior secured notes due 2027 (B1/BB-) were 6¼ points better at 75¼ bid on Friday afternoon on over $21.57 million of trading.

Talen Energy Supply LLC’s senior notes improved 1½ points to 1¾ points, while its senior secured paper fell 1 point to 1½ points on Friday, sources said.

Talen’s 6½% senior notes due 2025 (Caa2/CCC/CCC) improved 1½ points to 27½ bid after trading as high as 29 bid over the session.

The company’s 7¼% senior secured notes due 2027 (B1/B/B) were down 1 point on Friday afternoon at 87 bid on volume totaling $14.54 million.

In other distressed issues, Kronos Acquisition Holdings Inc.’s 7% senior notes due 2027 (Caa2/CCC) were going out about 2¾ points higher on the week, a source said.

Kronos’ 7% notes due 2027 (Caa2/CCC) rose about 1¾ points in thin supply over the day to the 79 bid range.

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