Nabors among distressed oil, gas bond gainers; Peabody paper improves; AMC climbs

By Cristal Cody

Tupelo, Miss., Jan. 6 – Distressed oil and gas bonds continued to rise in secondary trading on Wednesday following a bump in the prior session as oil prices soared on production cuts from Saudi Arabia.

Houston-based oil and gas drilling contractor Nabors Industries Ltd.’s senior notes (Caa1/CCC-) were stronger following the rise in energy names on Tuesday, a source said.

Nabors’ 7¼% notes due 2026 jumped nearly 3½ points on the day to 74 bid.

The company’s 7½% senior notes due 2028 climbed another 1.7 points to 71½ bid.

North Sea Brent crude oil futures rose 1.06% to $54.17 a barrel on Wednesday.

Coal producer Peabody Energy Corp.’s 6 3/8% senior secured notes due 2025 (Caa1/CCC-) gained 1½ points to 56½ bid, a source said on Wednesday.

Meanwhile, Chesapeake Energy Corp.’s 8% notes due 2027 traded mostly flat at 5¼ bid in light volume on Wednesday after heavy trading in the previous session, a market source said.

Separately, beleaguered theater owner AMC Entertainment Holdings, Inc.’s distressed bonds were among the gainers on Wednesday, a source said.

AMC’s 10½% first-lien secured notes due 2025 (Caa2/CCC) closed up 3 points at 76½ bid.

In addition, the company’s 12% notes due 2026 (Ca/C) rose 2¾ points to 27 bid during the session.

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