Valeant trades active, better; Tronox debt pushes higher; energy space, Intelsat end mixed

By Stephanie N. Rotondo

Seattle, July 20 – Valeant Pharmaceuticals International Inc. was again notable in the distressed debt market on Wednesday, as it was announced that the struggling drugmaker had received approval of two of its drugs.

The news resulted in a trading surge in the company’s debt, all toward the positive side.

Meanwhile, Tronox Ltd.’s 6 3/8% notes due 2020 had “a bunch of trades,” a trader said. There was no fresh news out Wednesday, but the chemical maker announced on Friday the departure of its chief financial officer.

Among the typical distressed names, the energy space was again trading mixed as crude oil prices ticked up modestly.

California Resources Corp., for instance, was lower on the day.

A trader said the 8% second-lien notes due 2022 fell nearly 1˝ points to 70. He also saw the 6% notes due 2024 dipping a point to 51.

Chesapeake Energy Corp.’s 8% second-lien notes due 2022, however, were deemed slightly better at 89 – though its 6 5/8% notes due 2020 were called half a point weaker at 73˝ bid.

Domestic crude oil ended with a slightly better tone on Wednesday, as the U.S. Energy Information Administration reported that refinery operations were higher than expected.

Away from energy, Intelsat SA paper “keeps trading,” a trader said.

He said the 8% notes due 2024, as well as notes linked to the Intelsat Jackson Holdings SA unit, were “up a little more, maybe about half a point.”

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