Chesapeake Energy begins tender; California Resources firms; Claire’s mixed on swap news

By Stephanie N. Rotondo

Seattle, Aug. 15 – Distressed bonds were moving about in Monday trading as investors reacted to fresh – or at least recent – news.

Chesapeake Energy Corp.’s debt traded mixed on the day as the company said it had launched a cash tender offer for 10 series of notes, as well as two series of convertible bonds.

The Oklahoma City-based oil and gas producer also launched a $1 billion five-year first-lien last-out term loan on Monday, the proceeds of which will be used to fund the tender.

Also in the oil and gas space, Los Angeles-based California Resources Corp. gave the early results of its own cash tender offer, which expires on Aug. 26. Already the offer is oversubscribed, leaving the 8% second-lien notes due 2022 – the third priority level in the tender – out in the cold.

Still, with a majority of the company’s other debt being taken out, the 8% notes ticked higher Monday.

Meanwhile, Claire’s Stores Inc. said late Friday that it was doing a debt swap of its own, exchanging notes due 2017, 2019 and 2020 for new term loans.

Come Monday, the Pembroke Pines, Fla.-based retailer’s bonds were mixed.

Away from tender-inspired moves, Avaya Inc.’s 7% notes due 2019 were slightly firmer, according to a trader, who pegged the issue at 79½.

Intelsat SA bonds were also trending upward, as a trader saw both the 7¼% notes due 2019 and 2020 ticking up half a point to 79 and 75½, respectively.

© 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.