Moss Creek, Weatherford, Navios distressed notes gain on oil strength; Transocean mixed

By Cristal Cody

Tupelo, Miss., Jan. 12 – Distressed energy bonds mostly ticked higher on Tuesday in tandem with stronger oil prices over the session.

Oil exploration and production company Moss Creek Resources LLC saw its 7½% senior notes due 2026 (Caa2/B-) add 1¾ points to trade at 82 bid, a source said.

Oilfield servicer Weatherford International LLC’s 11% notes due 2024 (CCC) rose 1½ points to 84 bid after climbing 1 point on Monday.

Petroleum tanker transporter Navios Maritime Acquisition’s 8 1/8% first priority ship mortgage notes due 2021 (B3/B-) added another 2 points to hit 74 bid on Tuesday after improving 1¾ points on Monday, a source said.

Oil prices climbed on Tuesday after slipping at the start of the week.

North Sea Brent crude oil futures for March rose $1.08 to $56.74 a barrel.

West Texas intermediate crude oil for February deliveries increased 96 cents to settle at $53.21 a barrel.

Other energy names softened, while offshore driller Transocean Ltd.’s paper was mixed, sources reported.

The company’s 6.8% notes due 2038 (C/CCC-) traded up more than 1½ points to 39½ bid during the session.

Its 7½% notes due 2026 softened 1¼ points to 48 bid on Tuesday.

Market tone was improved after softening Monday as stocks eked out modest gains over the day.

The iShares iBoxx High Yield Corporate Bond ETF recovered 11 cents, or 0.13%, to $87.01 after declining 47 cents, or 0.54%, on Monday.

The S&P U.S. High Yield Corporate Distressed Bond index improved 0.15% on Monday, giving a 3.19% total return for the month and year to date.

Chesapeake bonds quiet

Chesapeake Energy Corp.’s 8% notes due 2025 were not seen in secondary trading over the day, according to a market source.

The notes climbed 1½ points to 7 bid on Monday, improved from where the issue traded at 4½ bid as December closed.

Chesapeake Energy’s bankruptcy trial is underway before the U.S. Bankruptcy Court for the Southern District of Texas.

The company plans to eliminate about $7 billion of debt under the reorganization.

In other trading, car rental operator Hertz Corp.’s notes were improved early afternoon.

Hertz’s 5½% senior notes due 2024 traded up ¼ point to 54 bid, better than where the notes were seen Thursday up 1½ points at 52¾ bid, a source said.

© 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.