Distressed oil and gas names take focus, end mostly better; Frontier, Intelsat mixed

By Stephanie N. Rotondo

Seattle, July 18 – A distressed debt trader said it was “all oil and gas again” in Tuesday trading.

The focus on the energy space came as oil prices headed for higher ground on reports that Saudi Arabia was considering cutting its exports. That gave domestic crude prices a nearly 1% bump for the day.

In the distressed realm, California Resources Corp.’s 8% notes due 2022 were actively traded as oil prices firmed.

One trader said the debt was down a shade at 64.

However, a second trader called the issue up about half a point at 64 bid, 64½ offered.

While the gains in oil appeared to be good for CRC – and most of its sector peers – Denbury Resources Inc. was not so lucky.

A trader said the 5½% notes due 2022 finished the session off almost a point at 54½. Another trader also called the issue “a little lower,” but saw it ending with a 53 handle.

Away from oil, a trader said Frontier Communications Inc. bonds saw “a little bit of trading.”

Another trader deemed the debt mixed on the day, seeing the 11% notes due 2025 slipping a touch to 89 5/8, while the 6¼% notes due 2021 added a quarter-point to close around 86.

It was also a mixed bag for Intelsat SA paper.

At one shop, a trader said the name was a little lower for the day.

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