Distressed energy bonds down as oil prices slide; Transocean, Talen lower; Endo flat

By Cristal Cody

Tupelo, Miss., July 5 – Distressed energy bonds mostly softened on Tuesday as oil prices sank amid lower demand over the Independence Day holiday weekend.

Transocean Inc.’s bonds went out flat to weaker on Tuesday in thin trading after shedding about 10 points in June.

The offshore driller’s 6.8% senior notes due 2038 (C/CCC) declined about 2¾ points to 49½ bid, a source said.

Talen Energy Supply LLC’s bonds were mostly softer but have bounced back from lows seen ahead of the company’s Chapter 11 bankruptcy filing.

Talen Energy’s 6½% senior notes due 2025 (/D/C) softened about 1 point on Tuesday to 62½ bid, nearly triple the low of 22½ bid hit on March 31, a source said.

Oil prices declined more than $8 during the post-holiday session.

In other distressed bonds, Endo International plc’s paper was mostly unchanged in light trading action on Tuesday.

The 6% senior notes due 2028 (Caa3/C) have been flat over the last two sessions since the company missed a $38 million interest payment on the issue last week.

Endo Finance LLC’s 6% senior notes due 2028 (Caa3/C) were unchanged at 8 bid in mostly light trading, a source said.

© 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.