Distressed commodity names pressured amid broader market sell-off; iHeart remains weak

By Stephanie N. Rotondo

Phoenix, Sept. 22 – As the broader markets sold off Tuesday, so did the distressed debt market.

Commodity-linked names in particular got pushed down amid weakening materials prices. For its part, domestic crude oil dropped 1.47% on the day. That weakness came as the Wall Street Journal said a poll of 13 investment banks placed the 2016 average price per barrel at $54.40, down $9 from a poll done in August.

“Commodities were down all across the board,” one trader said.

Consol Energy Inc.’s 5 7/8% notes due 2022 were seen off 1˝ points at 70, according to one trader. Another market source pegged the company’s 8% notes due 2023 at 74˝ bid, off 4 points.

California Resources Corp.’s 6% notes due 2024 were also lower, dipping over half a point to 64.

In emerging market names, Pacific Exploration and Production Corp. – more commonly known as Pacific Rubiales – was again weaker, with a trader seeing the 5 5/8% notes due 2025 declining “6 and change” points to 35˝.

There has been no credit-specific news to cause such a huge drop, though worries about the state of the global economy have caused such names to wane of late.

In the coal arena, Peabody Energy Corp. bonds were quite heavy.

Another sector getting shocked was telecommunications. iHeart Media Inc. bonds were driven down again, though there was no news to cause the decline.

© 2015 Prospect News.
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