Quicksilver Resources under pressure as coupon looms; coal retreats again; NII debt ends mixed

By Stephanie N. Rotondo

Phoenix, Sept. 22 – A distressed debt trader said there was “a heavy tone to the market with equities being down.”

The equity market took a downward turn as housing sales slumped and small-cap companies were under pressure.

In distressed bonds, Quicksilver Resources Inc. debt was on the decline, like the rest of the market. But though the market was weaker, Quicksilver took a bigger hit than most other names.

In a related space, the coal sector continued to be under pressure amid concerns of oversupply and dwindling prices.

Walter Energy Inc.’s 9½% notes due 2019 fell over half a point to 91½, according to a trader.

The trader also saw Arch Coal Inc.’s 7¼% notes due 2021 hitting “new lows,” slipping to around 57 offered.

The 7% notes due 2019 lost over a point to 62½.

In Alpha Natural Resources Inc., the 6¼% notes due 2021 closed off half a point to 64, a trader said. The 6% notes due 2019, however, increased slightly to 67.

Another market source placed Alpha Natural’s 6¼% notes at 64 bid, off a quarter-point.

Quicksilver declines

Quicksilver Resources’ bonds took a hit in Monday trading, though there was no fresh news on the Fort Worth, Texas-based oil and gas company.

However, a trader did note that there is a coupon coming due on the 7 1/8% notes due 2016.

He said the subordinated notes hit an intraday low of 42, but went out around 45. He deemed that down 5 points on the day.

As for the 9 1/8% notes, he said they opened at 74, hit a low of 68½ and finished around 70.

Another trader pegged the 9 1/8% notes at 71 1/8, down nearly a point, on “a slug of trades,” about $30 million.

The 11% notes due 2021 fell almost 1½ points to 73 and the 7 1/8% notes were seen at 44½, down 3½ points.

NII bonds mixed

A trader said NII Holdings Inc. was “a mixed bag” during Monday’s session.

He saw the 7 5/8% notes due 2021 rising half a point to 17 3/8 and the 8 7/8% notes due 2019 “up smartly,” gaining almost a deuce to close around 26.

But the 10% notes due 2016 were deemed down half a point at 26.

At another shop, however, a trader said the name was stronger on the day.

He placed the 10% notes and the 8 7/8% notes at 26½ and the 7 5/8% notes at 17½.

Sears’ Canadian auction flops

Sears Holdings Corp.’s 6 5/8% notes due 2018 were little changed as the company’s auction for its majority stake in Sears Canada failed to provide an adequate bidder.

A trader said he saw a 90½ bid, 91 offered market for the issue, which he said was “unchanged or maybe even a shade better.” However, he noted that he saw the issue off half a point at 90¼.

In the latest round of an auction on the Sears Canada stake, Hoffman Estates, Ill.-based Sears did not receive any acceptable bids, making the retailer’s financial future even more shaky.

Sears had hoped to bring in at least $750 million for the stake.

© 2015 Prospect News.
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