New issues push distressed bonds off radar; oil price drops, pressures industry; Verso up

By Stephanie N. Rotondo

Phoenix, June 24 – Distressed debt was taking a backseat to new issues from Endo International plc and Ball Corp. in midweek trading.

As for the day’s distressed dealings, oil names were trending mostly lower as oil prices declined.

The dip in oil prices came as new data from the Energy Information Administration showed that crude oil stockpiles declined yet again. For the week ended June 19, inventories fell by 4.9 million barrels –more than the expected 2.3 million draw forecast by analysts surveyed by the Wall Street Journal.

However, there was an unexpected gain in refined products and crude production overall was up for the week.

West Texas Intermediate crude lost 76 cents, or 1.25%, to $60.25 a barrel. Brent crude dropped 88 cents, or 1.31%, to $63.57.

Away from oil and gas, the market was mostly softer, with a few bright spots.

After falling 3 to 4 points on Tuesday, Verso Paper Corp. tried to rebound. The 11¾% notes due 2019 improved half a point to 60 3/8, according to a trader.

Also higher were Alpha Natural Resources Inc.’s 6¼% notes due 2021, which ticked up a quarter-point to 7¼.

On the other hand, iHeartCommunications Inc.’s bonds remained under pressure.

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