Market sees ‘big reversal’; Affinion debt falls; oil and gas mixed despite crude increase

By Stephanie N. Rotondo

Phoenix, Oct. 2 – A trader said the distressed debt market experienced a “big reversal” on Friday.

“It was down, then it was up,” he said.

Still, the trader said there weren’t many big price changes.

“Nothing really went wild,” he said.

And while the market had a firmer tone overall, “some stuff was definitely pretty heavy.”

Affinion Group Holdings Inc. was one such name, according to a trader.

The Stamford, Conn.-based marketing company announced a debt-for-equity swap on Wednesday. Under the terms of the deal, Affinion intends to exchange about $260.5 million of its 13¾%/14½% senior secured PIK toggle notes due 2018 and about $360 million of the 13½% notes.

Additionally, holders of those notes will be able to participate in a rights offering for up to $110 million of 7½% cash/PIK senior notes due 2018 and 2.48 million shares of common stock.

Come Friday, Standard & Poor’s cut its rating on the company to CC from CCC+.

The oil and gas sector finished the day in mixed fashion, even as domestic crude oil prices improved amid declining fears related to Hurricane Joaquin.

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