Arcelor debt rises on capital raise plans; Linn Energy hires advisers, bonds plummet

By Stephanie N. Rotondo

Seattle, Feb. 5 – It was another mixed day for distressed bonds as fresh news was moving specific credits one way or another.

In addition to the credit-specific news, the latest jobs report was also a mixed bag.

The latest report from the Labor Department showed non-farm payrolls increasing by 151,000 jobs in January, resulting in a lower unemployment rate of 4.9%.

However, analysts had been expecting an add of 190,000 jobs while the unemployment rate held steady at 5%.

Additionally, data for November and December was downwardly revised to reflect 2,000 fewer jobs added in those months than was previously thought.

The news was also increasing bets that the Federal Reserve would choose to raise interest rates in March.

As for distressed dealings, ArcelorMittal bonds were boosted by news the steelmaker was considering raising as much as $3 billion in new capital to take out as much as $4 billion in debt. Investors seemed appeased by that announcement, even as the company said it lost nearly $8 billion in 2015.

Linn Energy LLC was meantime down heartily in Friday trading following word that the company had hired advisers to explore strategic alternatives.

The Houston-based oil and gas producer made the announcement late Thursday, also noting that it had fully drawn down its credit facility, giving it $919 million in additional liquidity to continue operations while it considers its options.

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