EP Energy notes better after bankruptcy filing; PG&E declines amid financing update

By James McCandless

San Antonio, Oct. 4 – The distressed debt market ended the week with a renewed focus on energy names and newsmakers.

EP Energy Corp.’s notes moved higher after the company filed for Chapter 11 bankruptcy with a restructuring plan in place.

The 8% senior secured notes due 2024 jumped up 12½ points to close at 50 bid. The 7¾% senior secured notes due 2026 gained 3½ points to close at 79 bid.

On Friday, the Houston-based independent oil and gas producer became another of its kind to file for Chapter 11 bankruptcy.

Backed by private equity firms Apollo Global Management Inc. and Elliott Management Corp., the company said that it has a restructuring plan that would cut $3.3 billion of its debt load, about two thirds of its total.

The plan would convert Apollo and Elliott’s 70% stake in the company’s notes into 99% of the equity in the reorganized company.

Unsecured noteholders objected to the plan in bankruptcy court on Friday.

Utilities name PG&E Corp.’s notes declined amid news that the company has received $34.35 billion in debt financing commitments.

The 6.05% notes due 2034 gave back 2½ points to close at 111 bid.

On Friday, the San Francisco-based bankrupt electric utility said that it had received $34.35 billion in debt financing commitments for its reorganization plan.

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