Peabody gains, oil and gas mixed after production numbers; Intelsat, Valeant bonds falter

By Colin Hanner

Chicago, Oct. 17 – The distressed debt market continued a pattern of quiet behavior during Monday’s session, though positive U.S. industrial figures and continued speculation on oil output may have mixed trading in the energy realm.

New data showed U.S. industrial production increased by 0.6% from August to September, and last month saw a 0.1% increase in total industrial production, making it the third out of the past four months to achieve positive production.

Peabody Energy Corp. was mixed after the session closed, as the industrial report indicated that of all major industry groups, the mining sector saw the biggest jump from August to September – from negative 1% to 0.4%. Yet the industry is down 9.4% year over year.

“Gains for oil and gas well drilling and servicing, for coal mining, and for nonmetallic mineral mining and quarrying outweighed a drop in crude oil extraction,” a report said. “The output of mining increased at an annual rate of 3.7% in the third quarter following six consecutive quarterly decreases.”

In response, Peabody’s 10% notes due 2022 were up, trading around “55½,” and the 6½% notes due 2020 were down a quarter-point to 36¼, a market source said.

Intelsat SA’s Luxembourg-linked 8 1/8% notes were trading around 31½, “down about a half,” a trader said.

Meanwhile, Valeant Pharmaceuticals International Inc.’s 5 7/8 % notes were down about a “half point” to “82½.”

“That’s definitely a good half-point lower,” a trader said.

© 2015 Prospect News.
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