Oil slips again, but distressed doesn’t ‘capitulate’ as much; existing Valeant up

By Colin Hanner

Chicago, March 9 – Though movement in the distressed realm was not immune to the continued tanking of oil prices on Thursday, new issues in the high-yield realm continued to dominate the entire space on a day where the market was generally soft.

“There’s really not much in distressed” on the session, a sellside trader said, noting new issues and not as much trading in the exploration and production space as a day prior.

Crude continued to slip on Thursday, falling below the $50-per-barrel threshold on near-record trading volume.

Distressed energy and production companies were not immune to the depressed prices but did seem to take a breather from the plummeting seen on Wednesday.

“Everything fell apart yesterday” with the decline of oil prices, but it “didn’t capitulate nearly as much today.”

California Resources Corp. was down fractionally in its most popular distressed notes, and offshore driller Noble Holdings International Ltd. saw at least a multi-point loss in one heavy volume of its distressed notes.

New issues in the high-yield arena – Aramark Services, Inc. and Iamgold Corp., among others – were joined by Valeant Pharmaceuticals International, Inc.’s pricing of $2.5 billion of senior secured notes, a deal announced on Thursday.

The pharmaceutical company’s distressed notes were up on the day, a trader said.

Satellite telecommunications Intelsat SA was about ˝ point lower overall in its Jackson-held bonds on Thursday, a trader said.

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