Oil price rally helps sector climb; Chemours, Tronox active as Apollo considers buyout

By Stephanie N. Rotondo

Phoenix, Oct. 8 – It was another up day for the distressed bond market on Thursday.

Oil and gas names remained actively traded and stronger, helped in part by another rise in domestic crude oil prices. Prices improved nearly 4% on the day, settling at a three-month high after Chinese stocks rallied and airstrikes in Syria prompted geopolitical concerns about the oil-producing area.

Chemours Co. paper was also active, but weaker following a verdict issued Wednesday in regards to a toxic dumping lawsuit brought against the company’s former parent DuPont. Sector peer Tronox Ltd., however, was moving up on reports private equity investor Apollo Global Management LLC was considering a takeover offer for Chemours and potentially other titanium dioxide producers, such as Tronox.

There was also news about Caesars Entertainment Corp. and its bankrupt unit, Caesars Entertainment Operating Co. The opco filed an amended reorganization plan on Thursday, and later in the day it was announced that the unit could not stop creditors from going after the parent company for unpaid debts.

A trader said oil and gas producer SandRidge Energy Inc. was active and higher on Thursday on news the company had wrapped a debt repurchase and exchange.

The trader said the 8¾% notes due 2020 rose to 67 from opening levels in a 64 to 65 context.

Another market source pegged the 7½% notes due 2021 at 27 bid, up a point.

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