iHeart bonds rise post-creditor agreement; Intelsat misses day’s rally; commodities gain

By Stephanie N. Rotondo

Seattle, March 1 – Distressed bonds were on the rise Tuesday, following the broader markets upward.

“A lot of stuff rallied today,” a trader said.

“ETFs were going insane, just buying everything,” another trader said.

Overall, the markets got a boost by fresh U.S. factory and construction data that indicated the economy was recovering. Additionally, oil prices popped as Russian president Vladimir Putin said a deal to cap oil production within Russia was close.

Domestic crude gained 1.75% to close at $34.34 a barrel. Commodities in general were higher, helping to boost that struggling area.

Of the day’s dealings, iHeartMedia Inc. debt moved higher following news the company had reached a deal with creditors to stave off a potential default.

iHeart’s lenders agreed to hold off on filing a default notice alleging the company breached its debt agreements when it transferred assets to its Broader Media LLC subsidiary. In return, iHeart agreed to hold off on transferring any other assets.

But while there was a definite firm tone to the market, Intelsat SA remained weak. The bonds have been active of late and trending mostly lower – a trend that was exacerbated Monday when the company said it was seeking an amendment of its credit facility.

“They were one of the only things bucking the trend,” a trader said Tuesday.

He said the 5½% notes due 2023 weakened nearly 2 points to 61¾, while the 7¼% notes due 2020 dropped 1½ points to 64.

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