Murray Energy ticks higher on earnings, executive order; California Resources rises; Concordia slumps

By Colin Hanner

Chicago, March 28 – Volume in the distressed market ticked higher than it has in several sessions on Tuesday, a trader said, with Murray Energy Corp. leading the way as one of the most actively traded issues.

A trader said the St. Clairsville, Ohio-based private coal company traded higher on its quarterly earnings, which were released on Tuesday morning, in addition to news that President Donald Trump signed an executive order that signaled a shift toward policies hoping to further energy independence and open use of federal lands for coal mining, according to several media reports.

As for the rest of the market, a trader said that distressed debts were trading “more or less sideways” on the session, “inching their way back given the better tone in stocks.”

“The market was trying to be better, but hesitation and the general trend has been softer” prompting distressed issues to not move too far in either direction, the trader said.

Elsewhere in the distressed arena, California Resources Corp. “rallied a good bit today” after a slight downturn on Monday, perhaps due to the shift in oil future prices, which rebounded after several losing sessions.

Candian oil sands producer MEG Energy Corp. posted gains on the day, as well.

Pharmaceutical company Concordia International Corp. was down fractionally, retailer Neiman Marcus Group, Inc. gained more than a point in one of its issues, and an Intelsat SA subsidiary saw a flat and falling issue on the session.

Trump, earnings fuel Murray

Murray Energy’s 11¼% notes due 2021 were up ¾ point to 77¾, a trader said, adding that they traded 20 times. Another trader said they were up about a point to a 78 handle.

A trader said the coal company released its quarterly figures on Tuesday, followed by a conference call with investors at 11 a.m.

The quarterly figures were assumed to be positive given the notes’ uptick, though an executive order signed by President Trump had coal stocks gaining during the session.

Intending to stimulate the workforce over the concerns of environmental regulations, Trump signed the “Energy Independence” executive order at the Environmental Protection Agency on Tuesday, rolling back several regulations put in place by the previous administration, according to several media reports.

Included in the order is allowing of coal mining on federal land, which was rescinded during the Obama administration, as well as a review of the Clean Power Plan and other policies having to do with energy independence.

Fellow coal producer Foresight Energy LP’s 11½% notes due 2023 were up 3/8 point to 93½.

Oil’s about-face

With sentiment growing around the extension of production cuts for the Organization of Petroleum Exporting Countries and non-OPEC members alike, as well as news that Libya’s western oilfields have been severely blocked, oil futures ticked higher on the day.

Distressed exploration and production companies were largely higher on the day.

California Resources’ 8% notes due 2022 were up 1½ points to 78½, traders said, after a ¾-point loss on Monday.

MEG Energy’s 7% notes due 2024 were up 1¼ points to 87½, a market source said.

And offshore driller Noble Holdings International Ltd.’s 6.05% notes due 2041 were up ½ point to 69 7/8, a trader said.

Concordia lower

Confidence in Concordia International’s distressed notes has fallen since the company announced its fourth quarter results no more than two weeks ago. The losing trend continued on Tuesday, a trader said.

The 9% notes due 2022 were down 3/8 point to 67¾.

And its 7% notes due 2023 were down ¾ point to 16½. Last Thursday, the notes had been trading with a 21 handle.

Distressed roundoff

Neiman Marcus Group’s 8% notes due 2021 were up 1¼ points to 60, a six-fold increase of Monday’s gains.

Intelsat Luxembourg Holdings SA’s 8 1/8% notes due 2023 were down ½ point to 58½, while its similarly-held 7¾% notes due 2021 were unchanged at 59. A trader said the continued weakness could be attributable to the market’s reaction to the satellite telecommunication company’s debt exchange offer announced on Friday.

Global shipper Navios Maritime Holdings Inc.’s 7 3/8% notes due 2022 were up ¾ point to 83.

Pulp and paper company Resolute Forest Products’ 5 7/8% notes due 2023 were up ¾ point to 88 5/8.

San Antonio-based media corporation iHeartCommunications, Inc.’s 9% notes due 2021 were down ¼ point to 74.

Telecommunications company Frontier Communications Corp.’s 7 5/8% notes due 2024 were up 1/8 point to 83 5/8.

And mortgage servicing company Walter Investment Management’s 7 7/8% notes due 2021 were down ½ point to 62¼ on a “half-dozen” trades, a trader said.

© 2015 Prospect News.
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