Thompson Creek pops on Centerra buyout news; market’s positive turn lifts distressed debt

By Stephanie N. Rotondo

Seattle, July 6 – Though distressed debt investors “still haven’t woken out of the doldrums,” the marketplace did have a firmer feel in midweek trading, according to a trader.

While liquidity was generally again on the muted side, there were signs of life. For instance, Thompson Creek Metals Co. was active and significantly better in trading, as investors reacted to news that Centerra Gold Inc. had made a $1.1 billion bid for the metals and mining company.

Some names saw a sizable pop on the day, though without any credit-specific news. Algeco Scotsman Global Finance plc was one such name, as its 10¾% notes due 2019 shot up 8½ to 9 points, closing with a 57 handle.

In mid-March, the modular space company said it was spinning off its North American operations to merge with Modular Space Corp. That transaction was expected to close in the second or third quarter, which may account for the day’s gains.

In the energy arena, a trader said there was “pretty good volume” in California Resources Corp.’s 8% second-lien notes due 2022. He placed the issue at 71¼, unchanged from the previous session.

Thompson Creek Metals’ debt jumped on Wednesday following Tuesday’s announcement that Centerra Gold was making a play for the company.

A trader said the 12½% notes due 2019 moved all the way up to 105 from 73 previously. The 7 3/8% notes due 2018 ticked up to par from 72.

© 2015 Prospect News.
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