Telecom bonds continue to trade better; CRC, Denbury stay firm; Fannie, Freddie in retreat

By Stephanie N. Rotondo

Seattle, Sept. 28 – There was a firm tone to the distressed debt market on Thursday.

However, the day’s trading centered on the usual go-to names, according to market sources.

For instance, Windstream Holdings Inc.’s 6 3/8% notes due 2023 continued to be active – and better – trading up 2¼ points to 71½, a source reported.

The name has been edging upward ever since Tuesday trading. The gains came after the company announced late Monday that it had received a notice of default related to the transfer of assets to its Uniti Group Inc. unit.

The company is denying that a default occurred.

Elsewhere in the telecom sector, Frontier Communications Corp.’s benchmark 11% notes due 2025 were a touch higher at 84¼, a source said. That compared to levels at 84 as of Wednesday’s close.

The source noted that the paper traded as high as 85¾ during the session.

In the oil and gas arena, California Resources Corp.’s 8% second-lien notes due 2022 remained strong, adding nearly a point to close at 66½.

Sector peer Denbury Resources Inc. was also better, ticking up half a point to 61½.

Despite the somewhat firm feel of the day, Fannie Mae and Freddie Mac preferreds were in retreat.

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