Distressed energy paper up as oil soars; Transocean, PBF gain; Endo declines over week

By Cristal Cody

Tupelo, Miss., March 4 – Distressed energy bonds stood out on Friday as oil continued to soar headed into the second weekend of Russia’s invasion of Ukraine.

“We’re seeing about 1½ points better on the high-yield energy side,” a trader said. “Bids aren’t really that aggressive for high-yield energy or distressed like they were the past few days, but still with energy rolling up, we’re still going to see some trail up.”

Transocean Inc.’s paper improved about 1½ points to over 2 points.

The 8% debentures due 2027 (Ca/CCC+) picked up nearly 2 points on $13.85 million of secondary volume, a source said.

The issue was quoted at 78 7/8 bid.

PBF Energy Inc.’s 7¼% senior notes due 2025 (Caa1/B/B-) traded over 2 points better at the 87½ bid area on more than $6 million of secondary action on Friday, a source said.

Elsewhere, Endo International plc’s paper softened about ½ point to ¾ point with the bonds remaining strongly traded following the company’s soft profit report on Monday and after a settlement with Purdue Pharma owners to resolve opioid-related claims was released Thursday.

Endo’s 6% senior notes due 2028 (Caa3/CCC-) were last seen on Friday down about ¾ point at 63¼ bid, a source said.

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