Oil lifts energy bonds; Talen up; Endo improves; Mallinckrodt shows signs of recovery

By Cristal Cody

Tupelo, Miss., Oct. 7 – Oil prices rallied back, keeping energy names mostly higher on Thursday in the distressed secondary market.

Talen Energy Supply LLC’s 10½% senior notes due 2026 (B3/CCC/B-) recovered 1 point after shedding 2 points on Wednesday.

“Everything energy related still has a pretty significant bid to it,” a source said. “Oil is pushing $80 a barrel and probably is going higher. That’s giving the whole sector a lift.”

West Texas Intermediate crude oil benchmark futures for November deliveries settled up 87 cents at $78.30 a barrel.

In other distressed issues active on Thursday, Endo International plc’s 6% senior notes due 2028 (Caa3/CCC+) improved ¼ point to 72¾ bid by the close, a market source said.

The notes are trading about 1¼ points higher month to date following opioid-related lawsuits settlements in September.

Mallinckrodt LLC’s bonds showed signs of recovery on Thursday with the bankrupt pharmaceuticals company’s 5¾% notes due 2022 up 1½ points at 48½ bid, a source said.

The notes remain pressured so far in October and are trading over 15 points weaker since mid-September.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.