iHeartMedia bonds better as hearing starts; Intelsat busy; Southwestern Energy trades off

By Stephanie N. Rotondo

Seattle, April 4 – With the second quarter underway, distressed debt was mostly higher in Monday trading.

Still, one trader noted that activity among distressed credits was thin. Another remarked that attention continued to be focused on new high-yield issues instead.

Of the day’s dealings, iHeartMedia Inc. traded firm as hearings regarding a transfer of assets from one subsidiary to another began in Texas. Creditors had brought the lawsuit against the company following the transfer of over $500 million in stock to a newly formed subsidiary, alleging that the transfer amounted to a default.

“Some of the trading might be posturing around what people think will come out of that,” a trader said.

Meanwhile, Intelsat SA paper continued to be “fairly active,” a trader said. Bonds traded up during the session, though without any news.

In the commodity arena, domestic crude oil declined on Monday, as hopes of a production freeze dimmed. That, in turn, pressured already struggling energy names.

For instance, Southwestern Energy Co.’s 4.95% notes due 2025 were active, with “over 20 trades,” according to a trader. The notes ended off over 2 points at 67¼.

The trader also saw the 4.05% notes due 2020 dropping nearly 1½ points to 71 1/8.

Also in commodities, steel names continued to gain ground as prices improve.

AK Steel Holdings Corp.’s 7 5/8% notes due 2020 “continue to creep up,” a trader said, placing the issue in a 65½ to 66 context.

© 2015 Prospect News.
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