Verso Paper ‘hammered’ post-earnings; Samson Resources drops; energy debt largely weaker

By Stephanie N. Rotondo

Phoenix, May 20 – The distressed debt market weakened again Wednesday, even as the latest minutes from the Federal Reserve indicated a June interest rate hike was unlikely.

Though Fed officials largely dismissed weak economic data from the first quarter, very few thought the economy was strong enough to handle a rate increase by next month.

Some Fed officials even indicated that an increase would not be appropriate until 2016.

Of the day’s goings-on, Verso Paper Corp. saw “quite a bit of activity,” according to a trader. Another trader said the papermaker’s debt “got hammered” following an earnings call held on Tuesday.

Samson Resources Corp. was also getting beaten down during the session. The oil producer reported its earnings on Friday, but held a conference call to discuss those results early Wednesday.

Elsewhere in the commodity space, a trader said “coal bonds continued to get hit,” as prices for coal remained under pressure.

One trader saw Alpha Natural Resources Inc.’s 6¼% notes due 2021 falling over a point to 13¼. The 6% notes due 2019 ended at 13¼ as well, which was down a point.

The trader also saw Peabody Energy Corp.’s 10% notes due 2022 decline over 2 points to 76¾.

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