Looking at Distressed Debt Opportunities
I put together a list of corporate (non-financial) bonds that have traded in the past 30 days at less than 50 cents. These are in ascending order of price:
Issuer Name | Coupon | Maturity | Callable | Price |
TOUSA INC | 7.5 | 03/15/11 | Yes | 2 |
BLOCKBUSTER INC | 9 | 09/01/12 | Yes | 2.5 |
MAGNA ENTERTAINMENT CORP | 7.25 | 12/15/09 | Yes | 3 |
TMST INC | 8 | 05/15/13 | Yes | 4 |
TRICO MARINE SERVICES INC | 3 | 01/15/27 | Yes | 7 |
TRICO MARINE SERVICES INC | 8.13 | 02/01/13 | No | 12 |
FAIRPOINT COMMUNICATIONS INC | 13.13 | 04/02/18 | Yes | 14 |
TRANS-LUX CORP | 8.25 | 03/01/12 | Yes | 19 |
GREAT ATLANTIC & PACIFIC TEA CO INC | 9.13 | 12/15/11 | Yes | 27 |
GREAT ATLANTIC & PACIFIC TEA CO INC | 6.75 | 12/15/12 | Yes | 33 |
GREAT ATLANTIC & PACIFIC TEA CO INC | 5.13 | 06/15/11 | No | 34 |
RASER TECHNOLOGIES INC | 8 | 04/01/13 | No | 35 |
TOUSA INC | 9 | 07/01/10 | Yes | 35 |
EVERGREEN SOLAR INC | 4 | 07/15/13 | No | 36 |
WOLVERINE TUBE INC | 10 | 03/31/12 | Yes | 36 |
AMBASSADORS INTERNATIONAL INC | 3.75 | 04/15/27 | Yes | 38 |
SUPERVALU INC | - | 11/02/31 | Yes | 39 |
ANGIOTECH PHARMACEUTICALS INC | 7.75 | 04/01/14 | Yes | 47 |
NASH-FINCH CO | 1.63 | 03/15/35 | Yes | 49 |
Most of these are in bankruptcy. Great Atlantic & Pacific is still trading on the pink sheets despite filing for bankruptcy last year (although the market cap is only $12 million).
Evergreen Solar (ESLR) is interesting because the common stock hasn't "gotten the message" - the market cap is still $81 million. Management is doing the distressed debt exchange dance where they make a ridiculous offer to the bondholders, which gets rejected and so management goes back to the drawing board and sweetens it.
Two years ago this list was much longer and more interesting - that's what a credit bubble will do.
3 comments:
Evergreen's CEO had an editorial in the last page of the most recent (a recent?) BusinessWeek, complaining that the federal government wouldn't bail him out of his crappy entrepreneurial decisions (factory 4x too big, HQ in the People's Commonwealth of Massachusett's, falling prices in his industry, no real, free market for his products without subsidies) and about how as a result he's taking the company and the jobs to China.
Good riddance, jerkoff!
Due to a credit bubble???
How about due to a recovering economy.
Finding the dark cloud within the silver lining again are we??
For a break stop by my site for Friday night entertainment.
Great work all week here.
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