Ultra Petroleum jumps post-earnings; Valeant debt in retreat; Quorum Health bonds drop

By Stephanie N. Rotondo

Seattle, Aug. 11 – The distressed debt market experienced some serious moves – both up and down – in Thursday trading.

Ultra Petroleum Corp., for instance, jumped 7 to 8 points after the company reported decent earnings.

A more than 4% gain in domestic crude oil prices could have also been playing a role. The pop was attributed to comments made by Saudi Arabia’s energy minister on possible actions OPEC members and non-OPEC producers would discuss at an informal meeting planned in September.

Also in the energy arena, EP Energy LLC’s 9 3/8% notes due 2020 rose 5 points to 67¾, a trader reported. The Houston-based oil and gas company launched a debt exchange on its term loans on Thursday.

Meanwhile, Valeant Pharmaceuticals International Inc.’s paper was drifting lower as the company came under “more scrutiny,” a trader said.

The U.S. Justice Department announced that its investigation into Valeant and its previously troublesome relationship with Philidor Rx Services could lead to criminal charges.

That wasn’t the only painful event in the health care sector: Quorum Health Corp. reported “dreadful numbers,” a trader said, which pushed its debt down as much as 15 points on the day.

However, the bonds did recoup a couple points, ending off only 10 to 12 points.

© 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.