Antero notes in focus after ratings shift; Ferrellgas better as votes solicited

By James McCandless

San Antonio, Dec. 22 – During Tuesday’s activity in the distressed debt space, developments in the energy space garnered the most attention.

Antero Resources Corp.’s notes varied after a subsidiary was on the receiving end of a positive ratings shift.

As oil futures declined for a third straight day, Callon Petroleum Co.’s issues followed while Occidental Petroleum Corp.’s and Transocean Ltd.’s paper rose.

Meanwhile, propane supplier Ferrellgas Partners, LP’s notes were better as the company started soliciting votes on its reorganization plan.

Air travel name American Airlines Group Inc.’s issues climbed and United Airlines Holdings, Inc.’s paper dipped as the industry awaited new stimulus.

In the retail space, L Brands, Inc.’s notes diverged a day after announcing new Bath & Body Works executive hires.

Sector peer Nordstrom, Inc.’s issues pushed higher.

Antero varies

Antero Resources’ notes varied in the day’s activity, traders said.

The 5 1/8% senior notes due 2022 held level to close at 99¾ bid. The 5% senior notes due 2025 added 1¼ points to close at 91¾ bid.

Early on Tuesday, a subsidiary of the Denver-based independent oil and gas producer was the subject of a positive ratings shift.

Fitch Ratings revised its outlook for Antero Midstream Partners LP to positive from negative, affirming its B issuer rating, the BB/RR1 senior secured revolver rating and the B+/RR3 rating on its senior unsecured notes.

The agency noted that the change also reflects positively on Antero.

The revision is based on the name’s asset sales, the progress it has made paying down portions of a near-term maturity wall and a partial recovery of commodities prices from lows experienced at the onset of the coronavirus pandemic.

Late last week, the company priced a $500 million issue of 5.5-year senior notes at par to yield 8 3/8%.

With the proceeds, Antero intends to redeem $350 million of the 5 1/8% notes.

Futures slip

As oil futures declined for a third straight day, distressed energy names trended higher, market sources said.

West Texas Intermediate crude oil futures for February delivery dropped 95 cents to settle at $47.02 per barrel.

North Sea Brent crude oil futures for February delivery was 83 cents worse to end at $50.08 per barrel.

Houston-based producer Callon Petroleum’s issues followed futures downward.

The 6 1/8% senior notes due 2024 shaved off ½ point to close at 56¼ bid. The 6 3/8% senior notes due 2026 declined by 1 point to close at 50½ bid.

Houston-based E&P Occidental Petroleum’s paper rose.

The 2.9% senior paper due 2024 was lifted ½ point to close at 96 bid. The 2.7% senior paper due 2022 reached up ¾ point to close at 101 bid.

Steinhausen, Switzerland-based contract driller Transocean’s notes picked up steam.

The 7½% senior notes due 2031 grabbed 1 point to close at 36 bid. The 8 3/8% senior notes due 2021 added 1¼ points to close at 87 bid.

Ferrellgas better

Meanwhile, propane name Ferrellgas’ issues were on better footing, traders said.

The 6¾% senior notes due 2022 gained ½ point to close at 97 bid. The 10% notes due 2025 inched up ¼ point to close at 110¾ bid.

In a Tuesday filing with the Securities and Exchange Commission, the Overland Park, Kan.-based propane supplier and Ferrellgas Partners Finance Corp. indicated that they have started soliciting votes on a pre-packaged joint plan of reorganization under Chapter 11 from holders of their 8 5/8% senior notes due 2020 and holders of Ferrellgas’ common units, Prospect News reported.

As previously reported, the companies said on Dec. 11 that they plan to file Chapter 11 petitions in the next several weeks to implement a restructuring with support from a majority of noteholders.

The companies are seeking a plan confirmation hearing on Feb. 24.

Under the plan, debt of the two entities will be eliminated, roughly $1.5 billion of debt of Ferrellgas, LP will be refinanced, and over $1 billion of new capital will be raised.

AA climbs, United dips

Air travel name American Airlines’ paper climbed, market sources said.

The 5% senior paper due 2022 garnered ½ point to close at 88½ bid. The 11¾% senior notes due 2025 also tacked on ½ point to close at 114½ bid.

The Fort Worth-based commercial flight name and others in the industry continued to remain at the forefront of the market’s attention a day after Congress passed a new round of wide-ranging stimulus against the effects of the pandemic.

The sector will receive $15 billion, largely in order to protect employee payrolls until March.

Originally, lawmakers talked of $17 billion in aid.

Also generating headlines is a new strain of Covid spreading in the United Kingdom, leading several countries to invoke travel restrictions.

Chicago-based carrier United Airlines’ notes dipped.

The 5% senior notes due 2024 chalked off 1¼ points to close at 98 bid. The 4¼% senior notes due 2022 lost ½ point to close at 100 bid.

L Brands diverges, Nordstrom higher

In the retail space, L Brands’ issues diverged in direction, traders said.

The 6¾% senior notes due 2036 weakened by ½ point to close at 111 bid. The 5¼% senior notes due 2028 improved by ¼ point to close at 104½ bid.

On Monday, the Columbus, Ohio-based specialty retail name announced two new executive hires in its Bath & Body Works unit.

The company appointed retail executive Julie Rosen as the new president and Deon Riley as its human resources chief.

Chief executive officer Meslow said that the hires will support the segment’s continued growth.

Seattle-based department store company Nordstrom’s paper pushed higher.

The 5% senior paper due 2044 reached up ¼ point to close at 93 bid.

© 2015 Prospect News.
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