Murray Energy bonds remain firm, active; Windstream debt continues to improve; iHeart edges up

By Stephanie N. Rotondo

Seattle, Oct. 2 – Murray Energy Corp. continued to be the dominant name in the distressed debt market on Monday.

The bonds had firmed by over 3 points on Friday after the Department of Energy released a proposal aimed at preventing additional premature closures of certain power generating facilities.

“Basically it’s a proposal that would be good for coal generating plants,” a trader said on the news.

Come Monday trading, those gains continued.

Meanwhile, Windstream Holdings Inc.’s debt was “stronger,” another “continuation from Friday,” a trader said.

“I guess people think the company has a better case” than the bondholder who is alleging that the Uniti Group Inc. spin-off caused a default.

Also stronger were iHeartCommunications Inc.’s 9% notes due 2019 and the 9% notes due 2021.

However, a trader said he had heard of “no reason” for the bonds to rise.

The trader placed the 2019 bonds “around 77,” up “about a point.”

Another trader saw the 2021 paper at 72½, up nearly a point.

Murray remains strong

Murray Energy’s 11¼% notes due 2021 continued to trend upward, following in Friday’s footsteps.

One trader said the debt was “quite active” and up a deuce at 61 7/8. A second trader said the bonds “continued to move up,” calling the paper up “another 1½ points” at 61½.

On Friday, Murray became topical after the DoE released a proposal aimed at preventing additional premature closures of certain power generating facilities – such as what happened to FirstEnergy Corp. earlier this year.

While Murray is not itself a power producer, it is a coal mining company. FirstEnergy happens to be one of its biggest customers.

Windstream winds up

Windstream Holdings’ notes kept moving up on Monday, according to traders.

One trader said the 7¾% notes due 2021 firmed nearly a point to 75¾, while the 6 3/8% notes due 2023 jumped 4 points to 74¾.

As for the Uniti Group-linked 8¼% notes due 2023, they were a point higher at 89½, on “pretty good volume,” the trader said.

Another trader said the longest-dated issues moved up to the mid-70s, while the shorter-dated issues ticked up to the mid-80s.

The trader noted that the bonds are up 7 to 8 points from the “recent lows.”

Last week, Windstream was slapped with a default notice from a holder of more than 25% of the 6 3/8% notes. The bondholder alleged that a transfer of assets, as well as other activities surrounding the spin-off of what would become Uniti Group, was a violation of the indenture, or a default.

However, the company is denying that a default occurred.

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