Distressed bonds weaken on Belgium attacks; Chesapeake slips, EP Energy slightly better

By Stephanie N. Rotondo

Seattle, March 22 – The distressed debt market was on the softer side Tuesday, following a string of terrorist bombings in Belgium.

The broader markets were also weak, though there was a brief run up into positive territory.

As the markets came in, so did oil prices. The flight to safer havens such as gold was also due in part to Libya stating it would not participate in an upcoming OPEC meeting to discuss production freezes.

In response, oil and gas names like Chesapeake Energy Corp. were trending lower.

The 8% second-lien notes due 2022 fell almost a point to 56¼, according to a market source.

Another source, however, deemed the 6 5/8% notes due 2022 up a deuce at 45 bid.

The 2.5% convertible notes due 2037 were trading off 2 to 3 points, according to a market source.

The notes were pegged in a 75 to 76 context early in the session, but came in even more to close at 73 bid, 73.25 offered.

That compared to levels around 75 at the open, off from Monday’s closing price around 78.

The 2.25% convertible notes due 2038 were about unchanged, trading around 45.375.

The Oklahoma City-based oil and gas producer’s equity was down 6 cents, or 1.23%, at $4.82.

Elsewhere in the oil and gas arena, EP Energy Corp.’s 9 3/8% notes due 2020 – an issue that was “soaring” on Monday on word of a $420 million asset sale – ticked up modestly to 55¼.

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