Hexion up after note buyback discussed; CHC mixed on reorganization; hospitals, pharma dip

By Colin Hanner

Chicago, Nov. 14 – After the extended holiday weekend, activity in distressed debt-land opened on Monday to stabilizing movement compared to last week’s volatile trends, which were due in part to the U.S. presidential election.

One trader said that the distressed market has been overlooked in the past few sessions, and especially Monday, because of a focus on higher-quality investments with interest-rate sensitivity given the high rate move that the market has seen in government bonds.

Quarterly earnings reports by chemical supplier Hexion Inc. brought about some movement in its senior secured notes after an announcement that the company would look to continue to buy back the debt at a discount if the opportunity arises.

CHC Group Ltd., a commercial helicopter operator, saw some movement stemming from the company’s reorganization and related disclosure statement, which will provide $300 million in new capital.

Movement in healthcare was quiet on the day. Community Health Systems Inc. and Quorum Health Corp. both dropped only marginally, and pharmaceutical company Pharmaceuticals International Inc. remained unchanged, if not slightly lower.

In the coal space, Peabody Energy Corp. continued its upward trek, while Murray Energy Corp. took a dive in the opposite direction.

Oil movement was mixed as focus on the Organization of Petroleum Exporting Countries came back into the limelight after speculation about president-elect Donald Trump’s energy plans seemed to influence the sector mid-to-late last week.

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