Chesapeake bonds drift down; Claire’s holds steady; Algeco debt declines; Intelsat gives up gains

By Stephanie N. Rotondo

Seattle, Aug. 17 – Distressed debt investors remained focused on recently topical credits in midweek trading.

Chesapeake Energy Corp., for example, continued to be busy in the wake of the company’s announcement on Monday that it would swap 10 series of notes and two series of convertible bonds for cash.

A trader said the 8% second-lien notes due 2022 – an issue not included in the tender – were “very busy,” trading off half a point to 92½. He also saw the 5¾% notes due 2023 – level three priority in the tender – dipping half a point to 74, while the 6 1/8% notes due 2021 – another third priority issue – held steady at 81.

The Oklahoma City-based oil and gas producer will use proceeds from a $1.5 billion term loan that priced Tuesday. The loan was upsized from $1 billion.

Meanwhile, Claire’s Stores Inc.’s 9% notes due 2019 were active, but unchanged at 57½, according to a trader. On Friday, the Pembroke Pines, Fla.-based jewelry retailer said it was swapping some of its debt – not including the 9% notes – or new term loans.

Also in the retail arena, Rue21 Inc.’s 9% notes due 2021 were seen rising 1½ points to 39.

Elsewhere, a trader said Algeco/Scotsman Holding S.à r.l.’s 10¾% notes due 2019 declined 1½ points to 59 5/8.

“I haven’t seen them trade in forever,” the trader commented.

On Monday, the Baltimore-based storage solutions company said that its merger agreement with Modular Space Corp. had been terminated, as transactions associated with the combination were not done by the expiration date.

The company said it was considering a new agreement, but that it might not come to fruition.

Intelsat softens

Away from news-driven names, Intelsat SA bonds remained on the radar.

But the debt was retreating after running up over the last several sessions.

A trader said the 7½% notes due 2021 slid half a point to 73, though the 7¼% notes due 2020 held steady at 75½.

Another market source pegged the 6 5/8% notes due 2022 at 73¼ bid, down almost a point on the day.

Intelsat is a Luxembourg-based commercial satellite services provider.

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