Walter Energy Senior Secured Debt $WLT

The Walter Energy 9.5s of 2019 are senior secured notes:

On March 27, 2014, the Company issued $200.0 million aggregate principal amount of 9.50% Senior Secured Notes due October 15, 2019 (the "Add-on 2019 Notes"). These notes are an addition to the $450.0 million aggregate principal amount of the Company's 9.50% Senior Secured Notes due 2019 (collectively the "First Lien Notes") which were issued on September 27, 2013 for a total principal amount of $650.0 million. The Add-on 2019 Notes are unconditionally guaranteed, jointly and severally, by each of our current and future 100% owned domestic restricted subsidiaries that from time to time guarantee any of our indebtedness or any indebtedness of any of our restricted subsidiaries. The Add-on 2019 Notes and related guarantees are secured on a first priority basis by substantially all of the property and assets of the Company and the guarantors. Interest on the Add-on 2019 Notes is payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2014.

They are quoted today, apparently, at about 55 cents on the dollar, which is a yield to maturity of around 28%.

Meanwhile, Walter unsecured debt would seem to still be below five cents on the dollar.

Remember that on June 11, Walter announced that it would use the 30-day grace period for the payment on the 2020 notes that was due on June 15. So, July 15 continues to be a good day to "circle on the calendar".

Also remember that the company was said to be negotiating a bankruptcy filing with the first lien creditor group.