Distressed trading muted; Intelsat weakens; Abengoa debt declines amid insolvency filing

By Stephanie N. Rotondo

Seattle, Nov. 30 – Distressed debt trading was slow-going at month-end, according to market sources.

One trader remarked that overall activity in the high-yield space was somewhat muted, though investment-grade trading seemed busier than not.

Despite the muted trading day, Intelsat SA’s bonds remained active, a trader reported.

The trader said bonds were weaker on the day, as has been the case since the company reported earnings in late October.

Perhaps the biggest loser of the day was Abengoa SA. The Seville, Spain-based renewable energy company said it filed for insolvency in Spain on Nov. 25. That news came out prior to the holiday weekend, but the company’s debt was tanking now that investors have had a chance to digest the news.

As for the oil and gas space, Chesapeake Energy Corp.’s 4 7/8% notes due 2022 were deemed half a point better at 42˝. California Resources Corp.’s 5˝% notes due 2021 meantime put on “about 3 points from before Thanksgiving,” a trader said, ending at 59 5/8.

The gains came as the company announced that it had increased the size of its previously announced exchange offer to $2.81 billion from $1 billion.

The early tender deadline was also extended to 5 p.m. ET on Dec. 1 from 5 p.m. ET on Nov. 25.

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