Bristow notes lower on consent solicitation; Sears issues gain amid post-bankruptcy operations buzz

By James McCandless

San Antonio, Nov. 14 – The distressed sector rolled on Wednesday with a continued fixation on the energy sector.

Bristow Group Inc.’s notes traded lower after the company announced a consent solicitation for its 8¾% senior secured notes due 2023.

Elsewhere, Ensco plc’s issues fell as the market continued to take swings at an energy sector bogged down with uncertainty.

With a rise in oil futures came gains for Sanchez Energy Corp.’s paper while Denbury Resources Inc.’s notes declined.

Meanwhile, in retail, Sears Holdings Corp.’s paper traded up as talk of the company issuing additional paper generated activity.

Sector peers Neiman Marcus Group, Inc. and J.C. Penney Co., Inc.’s notes were under pressure.

In coal, Cloud Peak Energy Inc.’s issues recouped Tuesday’s losses spurred from announcements of a strategic alternative review and a termination of its undrawn credit agreement.

Telecom names Intelsat SA and Frontier Communications Corp.’s issues dropped.

Bristow lower

Bristow’s notes were lower in Wednesday’s session, traders said.

The 6¼% notes due 2022 fell 1½ points to close at 64 bid.

After the close Tuesday, the Houston-based offshore aviation company announced that it is soliciting consents from holders of the $350 million outstanding of its 8¾% senior secured notes due 2023.

The consent solicitation is expected to close on Nov. 21.

The 8¾% notes were last seen trading at 92¾ bid on Nov. 13, according to Trace data.

On Nov. 9, the company announced that it would be acquiring sector peer Columbia Helicopters for $560 million.

Also reported that day was a loss of 78 cents per share for the third quarter and the retirement of the company’s chief executive officer.

Ensco issues mixed

Meanwhile, Ensco’s issues also declined.

The 5.2% notes due 2025 shaved off ¼ point to close at 77½ bid. The 7¾% notes due 2026 lost 1 point to close at 86¼ bid.

On Tuesday, the London-based contract driller’s 5.2% notes dripped 2¾ points, and the 7¾% notes moved 3 ¾ points lower.

Houston-based independent oil and gas producer Sanchez Energy’s paper saw a bright spot.

The 6 1/8% paper due 2023 rose ½ point to close at 36 bid.

Denbury, another Houston-based producer, saw negativity.

The 5½% notes due 2022 fell ¼ point to close at 83 bid. The 6 3/8% notes due 2021 also lost ¼ point to close at 93 bid.

After 12 straight days of losses, West Texas Intermediate crude oil futures were better by 56 cents at the end of trading to $56.25 per barrel. North Sea Brent crude futures gained 56 cents to end at $65.08 per barrel.

Sears gains

In retail, Sears’ issues were higher, market sources said.

The 6 5/8% notes due 2018 picked up 3½ points to close at 28¾ bid.

“There’s been an upswing in activity today,” a trader said. “Word is they’re considering offering new paper. Nothing’s final, but it’s gotten the market’s attention.”

The Hoffman Estates, Ill.-based bankrupt department store chain has been contending with creditors on the best way to operate in the short-term, with a faction of holders advocating for liquidation.

Elsewhere in the sector, Dallas-based luxury retailer Neiman Marcus’ paper trended lower.

The 8% paper due 2021 shed ¾ point to close at 60½ bid.

Plano, Texas-based peer J.C. Penney’s 8 5/8% notes due 2025 lost 2 points to close at 63½ bid.

Cloud Peak up

Cloud Peak’s issues recouped Tuesday’s losses, traders said.

The 12% notes due 2021 jumped 4½ points to close at 64½ bid.

On Tuesday, the 12% notes dropped 3 points.

“I’m not sure if it was a short squeeze or not but those remained topical today,” a trader said.

The Gillette, Wyo.-based coal producer generated chatter, recently announcing a strategic alternatives review that included a potential sale of the company.

It also terminated its undrawn credit agreement.

Intelsat declines

Meanwhile, Intelsat’s paper was caught up in the day’s negative trend, market sources said.

Intelsat Jackson SA’s 5½% paper due 2023 fell 1 point to close at 87¾ bid. Intelsat (Luxembourg) SA’s 8 1/8% paper due 2023 lost 2 points to close at 81¾ bid.

The Luxembourg-based satellite operator saw a large chunk of trading outside of the energy space, market sources said.

U.S. peer Frontier’s notes were also lower.

The 7 5/8% notes due 2024 dipped ¾ point to close at 56¼ bid. The 10½% notes due 2022 lost 2½ points to close at 76 bid. The 11% notes due 2025 fell ½ point to close at 70½ bid.

© 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.