Distressed space ‘dead’; PG&E gains continue; Ensco active

By Abigail W. Adams

Portland, Me., April 18 – Trading in distressed names was extremely light during Thursday’s abbreviated session with many clocking out early for the holiday weekend.

The space was “pretty dead,” a market source said. The light volume made trading levels hard to pinpoint.

While overall volume remained light, some names continued to see activity as they have for much of the week.

Pacific Gas & Electric Co.’s 6.05% senior notes due 2034 continued to see active trading on Thursday despite an overall slowdown in the space with the notes again posting gains.

Ensco plc’s 5¾% senior notes due 2044 were also slightly improved in active trading.

The notes have been in focus following the completion of its merger with Rowan Cos. plc and in anticipation of upcoming earnings.

PG&E up again

Pacific Gas & Electric’s 6.05% senior notes due 2034 remained active in the secondary space during Thursday’s truncated pre-holiday session.

The 6.05% notes gained about ¼ point to close Thursday at 101 3/8.

The notes have been on the rise in active trading since early last week when media reports surfaced the governor of California was proposing an insurance fund to aid utilities struggling with liabilities from wildfires.

Governor Gavin Newsom later called on the state legislature to consider a series of proposals to change laws surrounding utility company’s liabilities for wildfires.

Pacific Gas & Electric filed for bankruptcy in January soon after losing its investment-grade status due to liability from the California wildfires.

Among the proposals in California is a change to the legislation that holds utilities responsible for wildfires involving their equipment, a law PG&E has unsuccessfully tried to change in the past.

Ensco active

Ensco’s 5¾% senior notes due 2044 were among the only issues to see concentrated activity in the distressed debt space during Thursday session.

The 5¾% notes rose about ½ point.

They were changing hands between 66¼ and 66½ throughout the session with more than $10 million on the tape shortly before the market close.

The 5¾% notes have been active surrounding news of the London-based contract driller’s completion of its merger with Rowan.

The notes were also active in anticipation of the newly formed Ensco Rowan plc’s upcoming earnings.

The newly formed company announced it would release its earnings on May 2.

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