Sanchez Energy notes trade down, leading Monday volume; Murray Energy issues decline

By James McCandless

San Antonio, July 23 – The distressed debt market started the week with volume focused on names with recent news attached to them.

Sanchez Energy Corp. notes fell to start the week, leading trading. The company’s chief operating officer recently resigned.

Murray Energy Corp. issues slipped. Last week, the company’s chief executive officer called for less government involvement in energy markets.

American Tire Distributors paper improved. The company has recently tried to settle investor worries after two major tire companies ended distribution deals with the company.

Intelsat SA notes were mixed. A recent move by the Federal Communications Commission could lead to a potential revenue stream for satellite firms.

Frontier Communications Corp. issues fell. The company’s chief financial officer recently announced his resignation.

Mallinckrodt plc paper declined in the medical space.

Sanchez Energy falls

Houston-based independent oil and gas producer Sanchez Energy’s notes declined to start the week, traders confirmed, while leading volume. Recently, the company announced the departure of COO Christopher Heinson.

“Those notes were really leading today,” a trader said. “There’s been a ramp-up in activity for them over the last few weeks as they prepare for their earnings release. That may not be the only reason they’re moving, but they’re getting a lot of attention regardless.”

The 6 1/8% notes due 2023 lost about ¼ point to close at 67¾ bid.

Murray Energy down

St. Clairsville, Ohio-based coal producer Murray Energy issues fell, market sources confirmed. Last week, CEO Robert Murray made public statements about ending tax credits for wind farms, the progress being made to protect the coal industry, and the need for the federal government to double down on its efforts in that protection.

Murray Energy and other companies like it are waiting for the Department of Energy to decide on whether it will provide federal assistance to at-risk coal and nuclear power plants. According to Secretary of Energy Rick Perry, the plan is being studied.

The 11½% notes due 2021 lost about 1¼ point to close at 74¼ bid.

On Friday, the 11% notes rose about ½ point.

American Tire rises

Huntersville, N.C.-based tire distributor American Tire paper improved to begin the week, traders confirmed. Recently, executives held a conference call to calm investor worries about the recent loss of distribution deals with Bridgestone and Goodyear. The company has stated that the shift presents an opportunity to pursue other business opportunities more aggressively.

The 10¼% paper due 2022 jumped up 1½ points to close at 31¼ bid.

On Friday, the 10¼% paper gained ½ point.

Volume names trade

Luxembourg-based satellite communications company Intelsat notes were mixed. The FCC announced recently that it would consider a rule change allowing mobile providers to access airwaves currently restricted to traditional broadcasters and managed by satellite firms, potentially opening up a new revenue stream for satellite firms.

The Intelsat (Luxembourg) SA 7¾% notes due 2021 were level at 94¼ bid. The 8 1/8% notes due 2023 shaved off about 2 points to close at around 82½ bid.

On Friday, the 7¾% notes fell about 1 ¼ points and the 8 1/8% notes lost ¼ point.

Norwalk, Conn.-based wireline name Frontier Communications notes declined. CFO Perley McBride recently announced his resignation.

The 7 5/8% notes due 2024 fell about ¼ point to close at around 68¼ point. The 10½% notes due 2022 dipped about ½ point to close at 88¾ bid. The 11% notes due 2025 lost about 1½ point to close at 77 bid.

On Friday, the 7 5/8% notes picked up about ½ point, the 10½% notes fell about ½ point and the 11% notes dropped ½ point.

Britain-based drug maker Mallinckrodt saw its 4 ¾% paper due 2023 lost about ½ point to close at 82¼ bid.

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