Teva better after analyst upgrade; Navios mixed on debt offering

By James McCandless

San Antonio, June 3 – A new week in distressed trading saw renewed focus on pharmaceutical and shipping names.

Teva Pharmaceutical Industries Ltd.’s notes ended better after an analyst issued an upgrade following a string of negative headlines.

Sector peer Endo International plc’s issues were also improving.

In shipping, Navios Maritime Holdings Inc.’s paper ended mixed as a subsidiary began a private placement of senior secured notes.

Meanwhile, in oil and gas, Denbury Resources Inc.’s notes moved up after the company announced exchange offers for three series of notes.

Oil futures declined as Weatherford International plc, Ensco Rowan plc and California Resources Corp.’s issues finished mixed.

Elsewhere, in telecom, Frontier Communications Corp.’s paper trended negative as Intelsat SA’s notes finished mixed.

Teva, Endo better

Pharma name Teva’s notes ended Monday better, traders said.

The 3.15% notes due 2026 improved by 1¼ points to close at 77¾ bid. The 4.1% notes due 2046 rose 1¼ points to close at 66¼ bid.

The 3.15% notes saw about $25 million changing hands.

Coming off of a week of negative headlines, the Petach Tikva, Israel-based drug maker saw a respite on Monday.

On Monday morning, an Oppenheimer analyst upgraded the name to outperform, citing its continued growth and development efforts.

The analyst also noted that Teva’s potential liability in opioid epidemic-related lawsuits could top out at $700 million.

“Everyone’s making their call right now,” a trader said. “They’re staying topical for a while so it’ll swing back and forth for a while.”

Last week, after an $85 million settlement by Teva to Oklahoma was announced, two analysts said that the amount of money that the company would have to pay in legal disputes over opioids could run into the billions.

Dublin-based sector peer Endo’s issues also improved.

The 6% notes due 2023 added 1¼ points to close at 73 bid.

Navios mixed

In the shipping space, Navios’ paper ended the session mixed, market sources said.

The 11¼% paper due 2022 picked up 3 points to close at 67¾ bid. The 7 3/8% paper due 2022 lost fell 2¼ points to close at 65½ bid.

On Monday, the Monaco-based shipping name announced that Corporacion Navios SA, which is 100% owned by Navios Maritime’s subsidiary Navios South American Logistics Inc., plans to issue senior secured notes, Prospect News reported.

Mineral Logistics, a Cayman Islands trust, will issue the notes in a Rule 144A and Regulation S private placement and use the proceeds to make a senior secured loan to Corporacion Navios.

Denbury up

Meanwhile, in oil and gas, Denbury’s notes were moving up, traders said.

The 6 3/8% notes due 2021 tacked on ¼ point to close at 84 bid. The 5½% notes due 2022 jumped 5 points to close at 73 bid.

The Houston-based independent oil and gas producer announced exchange offers to holders of its $203,545,000 of 6⅜% senior subordinated notes due 2021 and $314,662,000 of 5½% senior subordinated notes due 2022 and a separate exchange offer to holders of its $450 million of 7½% senior secured second-lien notes due 2024, Prospect News reported.

“It’s about time for them,” a trader said. “They’ve been a little dormant for a while.”

Oil names mixed

As oil futures went negative, distressed oil tranches finished mixed, market sources said.

Baar, Switzerland-based oilfield services provider Weatherford’s issues saw mixed results.

The 8¼% notes due 2023 garnered 2¾ points to close at 47 bid. The 9 7/8% notes due 2024 gained ¾ point to close at 50¼ bid.

London-based contract driller Ensco’s paper also varied in direction.

The 5.2% paper due 2025 shaved off ¼ point to close at 69 bid. The 7¾% paper due 2026 picked up ¼ point to close at 74¾ bid.

Los Angeles-based producer California Resources’ notes finished mixed.

The 6% notes due 2024 lost ¼ point to close at 63¾ bid. The 8% notes due 2022 improved by ¼ point to close at 70¾ bid.

West Texas Intermediate crude oil futures for July delivery were pushed 25 cents lower on Monday to $53.25 per barrel.

North Sea Brent crude oil futures for July delivery ended at $64.45 per barrel after moving down 4 cents.

Frontier lower, Intelsat mixed

Elsewhere, in telecom, Frontier’s issues were under pressure, traders said.

The 10½% notes due 2022 fell 1¼ points to close at 71½ bid. The 11% notes due 2025 lost ½ point to close at 62¾ bid.

Last week, the Norwalk, Conn.-based wireline communications name announced that it would be selling its assets and operations in Washington, Oregon, Idaho and Montana for about $1.3 billion.

Luxembourg-based satellite operator Intelsat’s paper was mixed.

Intelsat Jackson Holdings SA’s 5½% notes due 2023 shed ½ point to close at 89 bid. Intelsat Luxembourg SA’s 8 1/8% notes due 2023, while moving as high as 74 bid during the day, ended level at 72¾ bid.

© 2015 Prospect News.
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