Community Health climbs in line with share surge; energy up as crude continues rise

By Paul Deckelman

New York, Jan. 11 – Traders in distressed debt and the bonds and notes of otherwise underperforming companies and sectors saw a busy day on Thursday with most issues on the upside, in line with broad gains in active trading in the overall larger high-yield bond market.

They noted particularly robust activity in hospital operator Community Health Systems Inc.’s several series of bonds, which were all up multiple points, in line with a surge in the company’s shares after its biggest investor increased its equity holdings.

Energy names like California Resources Corp. and EP Energy Corp. showed solid gains as crude oil prices continued their recent firming trend.

That strength extended to the offshore drilling sector, which also got a boost as Ensco plc priced a sharply upsized new eight-year note offering, which firmed smartly in heavy trading when it hit the aftermarket. The company’s existing bonds were also better, as were the notes of sector peers Noble Holding International Ltd. and Transocean Ltd.

Away from energy, communications satellite operator Intelsat SA’s bonds – both its Intelsat Jackson Holdings SA and Intelsat (Luxembourg) SA issues – rebounded after several days on the downside.

And retailer Rite Aid Corp.’s bonds continued to add to gains seen on Wednesday.

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