Nine West notes up again after bankruptcy filing; FirstEnergy Solutions mixed as aid remains uncertain

By James McCandless

San Antonio, April 10 – The distressed debt market experienced another low volume day on Tuesday, traders reported, as investors continue to hold off while uncertainty reigns.

Nine West Holdings, Inc. notes climbed again in the wake of the company’s filing for Chapter 11 bankruptcy on Friday.

FirstEnergy Solutions Corp. issues were mixed again as the future of its at-risk plants hinge on the government’s decision on whether or not to provide financial assistance.

California Resources Corp. paper closed up again after the company announced Monday that it had completed a cash and stock offering for working, surface and mineral interests from Chevron.

In distressed telecom, Frontier Communications Corp. notes were higher as the company seeks buyers for certain assets. Intelsat SA issues were mixed. Community Health Systems, Inc. issues were mixed. Talen Energy notes climbed for the third trading day in a row.

Nine West trades on filing

New York City-based shoe store chain Nine West notes traded higher, still active after the company filed for Chapter 11 bankruptcy on Friday, a trader said. The company is involved in ongoing talks to sell some of its assets.

The Jones Group Inc. 6 7/8% notes due 2019 gained about 2¾ points to close at around 11¼ bid. The Jones Apparel Group Inc. 6 1/8% bonds due 2034 shot up 4½ points to close at 16½ bid.

The 6 7/8% notes gained 5½ points and the 6 1/8% notes gained 7½ points Monday.

FirstEnergy up

FirstEnergy Solutions, a subsidiary of Akron, Ohio-based electricity producer FirstEnergy Corp., saw issues mixed on Tuesday, according to a market source. The company is awaiting a decision from Secretary of Energy Rick Perry on whether he will exercise his authority to guarantee profitability to at-risk plants.

Perry made comments on Monday suggesting that the policy may not be the best solution to solve the issue, though President Trump expressed his support for the measure last Thursday.

The company, along with FirstEnergy Nuclear Operating Co., filed for bankruptcy last weekend.

The 6.05% notes due 2021 rose ¾ point to close at 30¾ bid. The 6.8% notes lost about ¾ bid to close just under 30 bid.

California Resources jumps again

Los Angeles-based independent oil and gas producer California Resources paper traded up again, market sources confirmed, after the company announced on Monday that it had completed the acquisition of the remaining working, surface and mineral interests in the 47,000-acre Elk Hills field in the San Joaquin Basin of California The company estimates that this will add 13,300 barrels of oil equivalent per day to production.

The company paid $460 million in cash and 2.85 million shares of common stock. The effective date of the transaction is April 1.

The 6% paper due 2024 rose 2½ points to close at 64½. The 8% paper due 2022 gained ½ point to close at 80 bid.

The 6% paper due 2024 rose about ¼ point and the 8% paper due 2022 traded up ½ point on Monday.

Volume names trade

Norwalk, Conn.-based wireline telecom name Frontier Communications notes traded higher as the company seeks a buyer for certain assets as it tries to work through its debt issues.

The 7 5/8% notes due 2024 shot up 3½ points to close at 66¼ bid. The 10½% notes due 2022 ticked up but remained about level at around 87¼ bid. The 11% notes due 2025 gained ¾ point to close at 77½ bid.

Luxembourg-based satellite communications company Intelsat saw its Intelsat Jackson SA 5½% notes due 2023 shave off ¼ point to close at 83½ bid. The 7¼% notes due 2020 rose about ¼ point to close around 95¾ bid.

Franklin, Tenn.-based hospital operator Community Health Systems issues were mixed Tuesday.

The 7 1/8% notes due 2020 were active but level at 83¾ bid. The 6 7/8% notes due 2022 gained about ¼ point to close at 58¼ bid.

Allentown, Pa.-based independent power producer Talen Energy saw its 6½% paper due 2025 trade up ¾ point to close at 73 bid.

“Seems like we’re going to be quiet for a while,” a trader said. “If we have more days of calm in equity markets like today, that would probably change.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.