Concordia gains on equity stake talk; Continental bonds firm on call news; Peabody rises

By Stephanie N. Rotondo

Seattle, Oct. 4 – The distressed bond market was mixed on Tuesday, though there was an upward lean.

Fresh news was helping Concordia International Corp. bonds head higher.

On Monday, it was reported that the Canadian pharmaceutical company was in talks for a potential equity stake. The discussions are being considered as an alternative, as talks regarding a leveraged buyout have not gotten anywhere.

Continental Resources Inc. was also firming up after the Oklahoma City-based oil and gas producer called $600 million of notes.

Elsewhere in the oil and gas space, bonds traded mixed in line with the broader market. For its part, domestic crude oil ended slightly better on the day, though it was weak for most of the session.

A trader saw Chesapeake Energy Corp.’s 8% second-lien notes due 2022 sliding almost half a point to 101 1/8, while California Resources Corp.’s 8% second-lien notes due 2022 gained a point to close at 68½.

Whiting Petroleum Corp.’s 5¾% notes due 2021 were meantime a shade higher at 95, according to a trader.

Peabody Energy Corp.’s debt was trading higher as well on Tuesday, as metallurgical coal prices hit recent highs.

A trader saw the 10% notes due 2022 popping 5 points to 48, while the 6¼% notes due 2021 added 1½ points to end at 27.

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