| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2021 > News item |
Energy slide continues; Moss Creek, SM Energy bonds trade down; Talen notes improve
By Abigail W. Adams
Portland, Me., Aug. 20 – Trading activity was thin in the distressed debt space on Friday with few names active amid late August illiquidity.
“The market’s been pretty dead,” a source said.
However, market players continued to eye distressed energy credits as crude oil futures rounded out a brutal week with more losses.
SM Energy Co.’s 5% senior notes due 2026 and Moss Creek Resources Holdings Inc.’s 7½% senior notes due 2026 (Caa1/B) continued to trade off as WTI and Brent crude oil futures settled the day with losses that exceeded 2%.
Meanwhile, power company Talen Energy Supply LLC’s senior notes improved after plummeting the previous session.
Energy under pressure
Market players continued to eye energy credits in the distressed debt space as crude oil futures continued to plummet on concern over weaker growth.
SM Energy’s 5% senior notes due 2026 closed Friday down almost 2 points at 96, according to a market source.
Moss Creek’s 7½% senior notes due 2026 closed the day down 1¾ points at 84¼.
WTI crude oil futures settled at $62.32, a decrease of 1.37% or 2.15%, on Friday. WTI futures slid more than 9% on the week.
Brent crude oil futures settled at $65.03, a decrease of $1.42 or 2.14%. Brent futures were down almost 8% on the week.
Crude oil futures have been on a downward spiral over the past week as concern over the Covid-19 Delta variant and slowing economic growth has rattled investors.
Talen improves
Talen Energy’s senior notes improved on Friday after plummeting the previous session following a ratings downgrade.
Talen’s 10½% senior notes rose 3 points to close the day at 43½, according to a market source.
The notes plummeted 10 points in heavy volume on Thursday.
Talen’s 6½% senior notes due 2025 gained 3 points to close Friday at 39¾.
The 6% senior notes due 2036 rose 2 points to 32.
S&P Global Ratings downgraded Talen’s issuer rating to B- from B and its secured debt to CCC from CCC+.
© 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.