Distressed debt quiet; Hornbeck files, ‘no one surprised’; Oasis flat on ‘going concern’

By Abigail W. Adams

Portland, Me., May 19 – The distressed debt space was quiet on Tuesday as the new issue calendar overshadowed secondary market activity.

Crude oil futures continued to gain on Tuesday, lifting some distressed energy credits along with it.

In a follow through from the previous session, Denbury Resources Inc.’s senior notes continued to rise.

Denbury Resources’ 9% senior secured second-lien notes due 2023 were up 3 points to a 30-handle, a source said.

About $6 million of those bonds were in play during an otherwise quiet Tuesday session.

They were trading on a 13-handle a month ago.

However, the fate of many names in the energy sector has already been sealed, a source said.

Hornbeck Offshore Services, Inc. filed for Chapter 11 bankruptcy protection in a pre-packaged plan negotiated with creditors.

The filing was unsurprising and did little to move its unsecured notes, a source said.

Oasis Petroleum Inc.’s senior notes were also unchanged after the hydrocarbon exploration company included a going-concern statement in its first-quarter earnings report.

Oasis’ 6 7/8% senior notes due 2022 and 6 7/8% senior notes due 2023 continued to trade in the 10 to 12 context in light volume, a source said.

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