Peabody Energy sees renewed gains amid tumultuous oil news; Rent-A-Center debt in retreat

By Colin Hanner and Stephanie N. Rotondo

Chicago, Oct. 11 – Sandwiched between the long Columbus Day weekend and the start of Yom Kippur, distressed debt varied but saw gainers in the energy sector.

Speculation of the Federal Reserve raising interest rates before the year’s end might have affected the trading.

“Coal continues to be one of the more active spaces,” a trader said.

Peabody Energy Corp. gained 3¼ points on the day. One trader commented that the 10% notes due in 2022 were “up a couple of points, touched as high as 59,” and closed just above 57. The company’s 6% notes due 2018 were up a few points as well, trading around 37.

Murray Energy Corp. 11¼ % notes were “up a few points” to 69, a trader said.

In oil and natural gas exploration firms, California Resources Corp. and Linn Energy LLC, saw increases amid news that Russian Prime Minister Vladimir Putin said Monday he would support the Organization of the Petroleum Exporting Countries’ proposal to halt oil production to retreat on slumping oil prices. That was dwarfed on Tuesday when Russia’s state-owned Rosneft PJSC said it would not consider cutting oil output.

Oil slumped from its 15-month high in the process.

California Resources’ 8% notes due in 2022 were up 3¼ points to 37¼, and Linn Energy’s 7¾ % notes due 2021 were up 1½ points to 27.

Energy aside, the day’s biggest loser was Rent-A-Center Inc., as the company reported weak preliminary quarterly results.

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