Distressed energy credits mostly higher as crude prices boosted; Micron debt trades off

By Stephanie N. Rotondo

Seattle, April 8 – As has been the case for most of the week, new high-yield issues dominated trading on Friday, pushing distressed issues to the side.

Of the day’s distressed dealings, oil and gas credits continued to be on the radar, especially as oil prices got a huge boost.

A nearly 6% surge in oil prices again led energy-linked securities higher.

A trader said Southwestern Energy Co.’s 4.05% notes due 2020 ticked up almost half a point to 73½, while the 10% notes due 2022 moved up to 67¾.

Unit Corp.’s 6 5/8% notes due 2021 meantime “popped 2 points” to 52¼, a trader reported. The gain came as the company said it had made amendments on its credit facility, which included a reduction of commitments to $475 million from $550 million.

Meanwhile, Whiting Petroleum Corp.’s 6½% notes due 2018 were seen unchanged at 84¾.

Breitburn Energy Partners LP’s 8 5/8% notes due 2020 also bucked the day’s trend, falling 3 points to 5¾.

However, Breitburn’s preferred units did well for the day.

A trader said Micron Technology Inc.’s bonds were coming in as the Boise, Idaho-based semiconductor manufacturer said it was considering a senior bond deal of up to $1 billion, as well as a new $500 million term loan B.

The trader saw the 5¼% notes due 2023 declining a deuce to 78½.

“All of the other bonds kid of followed suit,” he said.

© 2015 Prospect News.
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