Valeant bonds improve as probe concludes; iHeartMedia maintains; energy space moves lower

By Stephanie N. Rotondo

Seattle, April 5 – The distressed debt space was treading water Tuesday, as investors again favored recently priced high-yield issues over bonds linked to struggling credits.

However, there were a few more active spots in the space, driven by fresh news.

Valeant Pharmaceuticals International Inc. saw its bonds get “a little bit of a bounce” after the board committee investigating issues related to the company’s relationship with Philidor found no new issues.

As such, Valeant said that it would not need to restate its financials any more than it already has.

A trader placed the 6 1/8% notes due 2023 at 78½, up over a point. The 6¾% notes due 2018 rose a like amount to 92 1/8.

Meanwhile, iHeartMedia Inc. bonds were following the day’s trend, as a court hearing regarding a potential default went into its second day.

“There was a little bit of activity, but it seems to be in line with where it has been trading,” a trader said.

The oil and gas arena was on the weaker side, even as domestic crude ticked up a touch for the day. The gains came as Kuwait said a production freeze could move forward without Iran’s participation.

A trader saw Oasis Petroleum Corp.’s 6 7/8% notes due 2022 fall almost a point to 73. He also pegged Chesapeake Energy Corp.’s 3.872% notes due 2019 at 36½, off almost a point.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.