Energy names rise, led by California Resources; Toys takes a beat; telecom in trouble

By Stephanie N. Rotondo

Seattle, Sept. 20 – There were “no real movers and shakers” in the distressed debt market on Wednesday, according to one trader.

However, he did see that “energy names were quite a bit better,” led by California Resources Corp.

Away from energy, Toys ‘R’ Us Inc.’s debt was “a lot quieter,” a trader said.

The bonds have been on the active side of late, but were the nom du jour on Tuesday when it was announced that the Wayne, N.J.-based toy retailer had filed for bankruptcy.

A trader said the 7 3/8% notes due 2018 were “probably up another 2 points” at 29.

Another source echoed that level, also deeming the paper up a deuce.

The bonds are trading flat, or without accrued interest.

The telecommunications space remained on the radar as well, with Windstream Holdings Inc. taking a hit following a downgrade from S&P on Tuesday.

Elsewhere, a trader said there was “a flurry of activity” in Techniplas LLC’s 10% notes due 2020.

“They finally found a buyer for bonds today,” the trader said, noting that the paper had been offered around, but no one was biting.

The debt traded at 70 on Wednesday, down 7 points.

Another trader also saw the issue trading “plus or minus 70,” adding that the debt “hasn’t traded in over a week, but it was at 77 last.”

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