Morning Commentary: Pacific Rubiales Energy to meet with investors; Ukraine gets support

By Christine Van Dusen

Atlanta, April 1 – Pacific Rubiales Energy Corp. was in the news on a somewhat quiet Wednesday morning for emerging markets assets amid rumors that the Brazilian company would soon meet with fixed income investors.

The company is expected to discuss ways to restructure its debt, given that “current oil prices are too low for the company to service its debt,” according to a report from Schildershoven Finance BV.

In response, the company’s 5 3/8% notes due in 2019 traded Wednesday morning at 66 bid, 67 offered after Tuesday’s levels of 66 bid, 67.25 offered.

The 7¼% notes due in 2021 were spotted at 67 bid, 68 offered after Tuesday’s 67.25 bid, 68.75 offered while the 5 1/8% 2023s were flat to Tuesday at 57.50 bid, 59 offered.

And the 5 5/8% 2025s were seen at 58.50 bid, 59.50 offered, unchanged.

This latest news added to the pile for Pacific Rubiales, which recently reported disappointing earnings, suspended dividends and saw its bonds plummet after a contract change with Ecopetrol SA meant other operators would likely run Rubiales Field.

In other news, sovereign bonds from Ukraine have seen support so far this week, according to Fyodor Bagnenko, a fixed income trader with Dragon Capital.

The curve was stronger by about a ½-point, he said.

In the quasi-sovereign space, OJSC Oschadbank’s bonds were better bid while State Administration of Railways Transport of Ukraine’s (Ukrzaliznytsia) bonds were offered, he said.

“Buyers emerged in corporate bonds but were reluctant to chase the market higher,” he said.

© 2015 Prospect News.
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