Ultra Petroleum falls after posting production numbers; Community Choice notes improve

By James McCandless

San Antonio, April 19 – The distressed debt market was described as “dead” on Thursday with very few names trading.

Ultra Petroleum Corp.’s notes saw a decline after receiving attention as it posts its Q1 production numbers and reaffirms its borrowing base.

Community Choice Financial Inc.’s notes traded up as traders and investors deliberate on when the company will decide to restructure.

Community Health Systems, Inc.’s paper was mixed after the company announced Wednesday that it had entering into an agreement to sell another hospital as part of its divestiture plan.

Intelsat SA’s notes were mixed as news from earlier in the week about being part of a government project drives trading. Frontier Communications Corp.’s note issues were mixed as the search for buyers for certain assets continues. EP Energy, Inc.’s paper was mixed Thursday, mirroring oil futures.

Houston-based independent oil and gas name Ultra Petroleum saw its notes decline as the company announced Q1 production numbers, traders confirmed, exceeding the midpoint of its guidance. It also amended its credit agreement to account for a higher maximum net leverage covenant to 4.50 from 4.25 times.

The 7 1/8% notes due 2025 lost 2½ points to close at 73¼ bid. The 6 7/8% notes due 2022 shaved off ¾ point to close at 79½ bid.

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