Hornbeck notes active amid talk of club deal; Digicel improves on earnings release

By James McCandless

San Antonio, Nov. 28 – The distressed space saw activity congruent with equity markets, largely improving on Wednesday.

Hornbeck Offshore Services Inc.’s notes were mixed amid talk of the company reaching a club deal to handle its debt.

In telecom, Digicel Group Ltd.’s issues gained as the company seeks to reassure investors with its earnings report amid talks with noteholders on an exchange offer.

Sector peer Altice SA’s paper saw a boost.

Elsewhere in the energy space, Alta Mesa Resources, Inc.’s issues rebounded after disappointing the market with its third-quarter earnings earlier in the month.

Bristow Group Inc. and Sanchez Energy Corp.’s paper fell while California Resources Corp.’s notes were mixed.

Metals producer Ferroglobe plc’s notes saw a recovery on mixed market sentiment over a recent earnings report.

Hornbeck’s notes were mixed Wednesday, traders said.

The 5 7/8% notes due 2020 lost ¾ point to close at 65¼ bid. The 5% notes due 2022 picked up ¼ point to close at 62½ bid.

The company is currently trying to secure a club deal in order to get rid of a large portion of its debt, a trader said.

“They are taking a positive step to remove the first liens,” a trader said. “It’s a good deal if they can get it done. Everything we’ve heard suggests that it’s not a guarantee.”

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