Transocean, PBF higher; Summit Midstream edges up; Talen, Rite Aid CDS spreads widen

By Cristal Cody

Tupelo, Miss., March 7 – Energy paper in the distressed space continued to gain on Monday as benchmark WTI crude oil hit nearly $120 per barrel during the session.

Transocean Inc.’s 6.8% senior notes due 2038 (C/CCC) went out 2¾ points higher in the 63 bid area, a market source said.

PBF Energy Inc.’s 6% senior notes due 2028 (Caa1/B/B-) gained 1 point to 78 bid.

Summit Midstream Holdings LLC’s 5¾% senior notes due 2025 (Caa2/B-) traded about ¾ point higher at the 80 bid area after ending the prior week over 9½ points softer.

Talen Energy Supply LLC’s paper was quiet after ending the previous week unchanged to softer, while its credit default swaps spreads have increased more than 550 basis points over the past two weeks, according to a market source and a report from Moody’s Investors Service.

Talen’s CDS spreads increased 300 bps to 4,721 bps in the week ended March 2 after rising 253 bps in the week ended Feb. 16.

Rite Aid Corp.’s CDS spreads also increased 41 bps to 1,233 bps for the week ended March 2, according to Moody’s.

Rite Aid’s 7.7% senior debentures due 2027 (Caa2/CCC/CCC) traded about ¼ point to ½ point softer on Monday at the 82 bid range, a source said.

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