Dynegy ticks higher into Monday but stock plummets; Petsmart active; Intelsat quiet

By Colin Hanner

Chicago, May 22 – The first trading day of the week brought mostly lackluster activity in the distressed debt market, with two issuers soaking up most of the liquidity throughout the session.

Coming off an upbeat Friday session with buzz of a possible takeover bid from rival Texas electric power generation company Vistra Energy Corp., Dynegy Inc. continued to climb higher on Monday, though a selloff in the stock late in the day seeped into the bond market.

“It’s getting undone at the end of the day,” a trader said. “We’ll find out soon enough what it is.”

Away from what is sure to see more developments, PetSmart, Inc.’s existing bonds ticked higher on news that the company will begin a roadshow for a two-part offering of notes to finance its acquisition of Chewy Inc., a Dania Beach, Fla.-based online retailer of pet food and other pet-related products.

An earnings call from Thursday for St. Clairsville, Ohio-based private coal company, Murray Energy Corp., pointed to signs of positivity, as Murray continued to gain for the second day in a row.

Satellite telecommunications company Intelsat SA, which was slightly easier on Friday’s session, moved up fractionally on Monday.

Downgrades to Frontier Communications Corp. and Claire’s Stores Inc. caused a mixed bag of movement on the session, though both issues did not drift too far from where they started.

And several energy names were higher in tandem with crude oil, which rose on the confidence of supply cuts extending for Organization of Petroleum Exporting Countries.

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