Distressed chemical makers trade actively, better; rising oil gives energy space a boost

By Stephanie N. Rotondo

Seattle, June 29 – The distressed bond market was again trading firm on Wednesday, as the markets seemed to shake off concerns about the United Kingdom’s looming Brexit.

Chemical manufacturers were particularly active, though there was no sector- or credit-specific news to cause the moves.

A trader said Platform Specialty Products Corp.’s 6½% notes due 2022 improved 1½ points to 88. He also saw Tronox Ltd.’s 6 3/8% notes due 2020 rising a deuce to 74.

Hexion Inc. was another chemical name gaining ground, as its 6 5/8% notes due 2020 ticked up half a point to 84½, according to a trader.

Oil and gas names were also trending mostly better for the day, helped in part by an over 3.5% improvement in domestic crude oil prices.

One market source said Chesapeake Energy Corp.’s 6 5/8% notes due 2020 increased 2 points to 71½ bid, while Denbury Resources Inc.’s 6 3/8% notes due 2021 added a point to close at 70 bid.

However, another source said Chesapeake’s 3.878% notes due 2019 slipped a touch to 75¾.

For its part, oil prices closed at $49.54 a barrel. The commodity’s price was boosted by news that U.S. crude inventories declined by 4.1 million barrels last week, larger than the 2.4 million draw analysts polled by Reuters had forecast.

The drawdown was the sixth consecutive week of declines for U.S. stockpiles.

© 2015 Prospect News.
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