Intelsat remains firm post-earnings; Whiting ends mixed; Chesapeake bonds rise

By Stephanie N. Rotondo

Seattle, July 29 – Recent earnings announcements remained a key driver of distressed bonds on Friday.

Intelsat SA was “the most active” name of the day, according to one trader. Those bonds were pushing up again, as they have been doing since Wednesday when the company released its second-quarter results.

The results beat analysts’ expectations.

Whiting Petroleum Corp. was another one that came out with numbers this week. After posting a wider loss, its bonds have been in retreat – but its convertible debt was trending higher on Friday.

Away from earnings news, Peabody Energy Corp. debt “has been moving up,” a trader said, seeing the 6¼% notes due 2019 pushing up “over a point” to trade with a 15 handle.

A second trader deemed the issue nearly a point better at 15½.

Meanwhile, a trader said Avon Products Inc.’s 6¾% notes due 2023 were “considerably higher” than where they were in mid-July. He pegged the issue at 78 1/8, up 3 points.

In the oil and gas space, Chesapeake Energy Corp.’s 8% second-lien notes due 2022 were called “up a couple points” on “news they are possibly selling a position in their Barnett Shale” property, a trader said.

The trader saw the paper ending in a 90 zip code, versus levels in an 86½ to 87 context in early trading.

A second trader pegged the notes at 89, up 2½ points.

Chesapeake is based in Oklahoma City.

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