Shelf Drilling, Transocean, Callon, Summit Midstream notes drop; Washington Prime stable

By Cristal Cody

Tupelo, Miss., March 19 – Bonds in the oil and gas distressed space remained mostly weaker on Friday as oil prices recovered some losses from the prior session.

Shelf Drilling Holdings Ltd.’s 8¼% senior notes due 2025 (Caa3/CCC+) softened more than 2 points to 74¼ bid, a market source said.

Offshore driller Transocean Ltd.’s 6.8% notes due 2038 (C/CCC-/) fell more than 3¼ points to just under 47 bid in thin volume, according to a market source.

Callon Petroleum Co.’s 6 1/8% senior notes due 2024 (Caa2/D) also declined 2¼ points to 86½ bid.

The Woodlands, Tex.-based Summit Midstream Partners, LP’s 9½% series A fixed-to-floating rate cumulative redeemable perpetual preferred units (Caa3/C) also were down 2 points at 62 bid during the session, a source said.

Separately, Washington Prime Group, LP’s 6.45% notes due 2024 (C/D/C) were mostly unchanged in the 57 bid range on Friday, a market source said.

The notes traded in the 73½ bid area in mid-February.

S&P dropped the notes to D from C on Wednesday after Washington Prime Group, Inc. disclosed that it would default on the issue, but the company has entered a forbearance period with its lenders and noteholders that ends March 31.

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