Intelsat solidifies exchange talks; Peabody up after paying DIP in full; energy firm

By Colin Hanner

Chicago, Dec. 5 – It was a lackluster start to the week in the distressed high-yield arena, according to several traders, and several showstoppers from last week’s trading continued to trade, albeit with much smaller volume.

“More of the attention was on newer deals,” a trader said, referring to newer issues in the regular high yield market.

A trader said there was “not even $2 billion [notes] traded in high yield overall” on Monday but pointed toward Intelsat SA’s Jackson- and Luxembourg-linked bonds as a bond of appeal, especially on top of news that the communication satellite company agreed to exchange new notes for existing senior notes.

One trader said that news from Friday surrounding Peabody Energy Corp. finally settled in the markets on Monday, with several of its notes trading up. On Friday, the St. Louis-based company requested court approval to repay its debtor-in-possession financing obligations in full before the scheduled maturity date.

Murray Energy Corp. followed suit in the coal space.

Oil futures were coming off a three-day stretch of unparalleled gains, topping the $50-per-barrel mark, but slowed to the point of declines at the start of the new week.

Yet, distressed energy staples, like California Resources Corp., Linn Energy, LLC and MEG Energy Corp., continued to reap the benefits stemming from a supply-cut accord last Wednesday.

In healthcare, Community Health Systems, Inc. continued to tick upward, with a trader saying the notes in question saw several-point gains for the second-straight session.

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