Oil, gas bonds trade higher; Ensign, Shelf Drilling, PBF up; China Evergrande mixed

By Cristal Cody

Tupelo, Miss., Sept. 23 – Distressed oil and gas bonds rallied on Thursday as oil futures remained over $1 higher for a second consecutive session.

Ensign Drilling Inc.’s 9¼% senior notes due 2024 (Caa2/CCC+) jumped 2 points to 98 bid on $4 million of secondary supply, a source said.

Shelf Drilling Holdings Ltd.’s 8¼% senior notes due 2025 (Caa3/CCC+) traded about 2 points stronger at 76¾ bid on over $4.5 million of volume.

PBF Holding Co. LLC’s 7¼% senior notes due 2025 (B3/B/B+) gained 1¾ points to 67¾ bid. Nearly $7 million of notes were traded.

Energy Transfer Partners LP’s 6¼% perpetual preferred units (BB) traded more than 2¼ points higher at the 91¼ bid area.

China Evergrande Group’s offshore bonds were about 3½ points to nearly 4 points better with some issues weaker on Thursday, sources report.

Evergrande’s 8¾% senior notes due 2025 (C/C/C) dropped 2 1/8 points to 28½ bid on volume totaling more than $17.5 million.

The 8¼% senior notes due 2022 (Caa2/CCC-/CCC) rose nearly 4 points to 33 bid by the close.

Secondary volume totaled $4 million.

Meanwhile, bonds from Midas Intermediate Holdco II LLC, doing business as Service King, fell 4½ points, a source said.

The 7 7/8% senior notes due 2022 (Caa3/CCC-) declined to 83½ bid.

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