Another oil price gain pushes distressed energy names higher; NII firms, RadioShack steady

By Stephanie N. Rotondo

Phoenix, Feb. 5 – Distressed debt investors were again focusing on energy names Thursday, which were firming up along with another gain in oil prices.

“It’s all energy,” a trader said. “It’s the only thing that trades.”

Samson Investments Co.’s 9¾% notes due 2020 ended a point higher at 34, a trader reported. EXCO Resources Inc.’s debt was also better, its 8½% notes due 2022 up 4 points at 66 and its 7½% notes due 2018 up a fiver at 68.

In SandRidge Energy Inc., a trader said the 7½% notes due 2023 were a point higher at 72 3/8, while the 7½% notes due 2021 gained 1¼ points to 72½.

Halcon Resources Corp.’s 8 7/8% notes due 2021 were also on the rise, putting on 2½ points to finish at 72¾, according to a trader.

Linn Energy LLC’s debt bucked the day’s trend, ending mixed. The 7¾% notes due 2021 were steady at 79, though the 6¼% notes due 2019 gained a point to 79¾.

Some bonds, however, did not benefit at all from the firmer tone in the oil and gas space.

West Texas Intermediate crude oil ended nearly 5% higher on the day at $50.79, a gain of $2.34. Brent crude was similarly higher, rising $2.63 to $56.79.

Away from the commodity chaos, a trader said NII Holdings Inc.’s bonds were “up a bit.”

The trader speculated that the gains were due to investors “digesting” news out in late January in regards to AT&T’s purchase of the company’s Mexico unit.

Meanwhile, RadioShack Corp. was said to be readying to file for bankruptcy as soon as Thursday night.

© 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.