GenOn rises after restructuring agreement’s majority approval; Dynegy steady; E&P mixed

By Colin Hanner

Chicago, May 23 – Activity in the distressed-debt market was focused Tuesday on GenOn Energy Inc., the Houston-based energy company whose proposed restructuring lifted bonds across the board on the session.

A subsidiary of NRG Energy Inc., GenOn gained a majority approval for a restructuring agreement via a Chapter 11 filing in which GenOn’s senior notes will receive 100% of the equity in the reorganized company, while holders of GenOn Americas Generation, LLC’s senior notes will receive 92% of par in cash.

Elsewhere in the power producing sector, Dynegy Inc., which had been whispered on Friday of being acquired by Vistra Energy Corp., was trading around the same levels it had seen Monday after an equity selloff caused some speculation around the issue.

Crude oil futures created more of a cushion above the $50 a barrel benchmark on Tuesday after support for continued supply cuts from Organization of Petroleum Exporting Countries seemed more likely ahead of a meeting to be held Thursday. Yet, distressed exploration and production companies were mixed on the session.

Private coal producer Murray Energy Corp. saw yet another day of similar gains following an earnings call held on Thursday.

Pet retailer PetSmart, Inc. was again active on news that the company will begin a roadshow for a two-part offering of notes to finance its acquisition of Chewy Inc., and a handful of retailers were mixed on the session.

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