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FMG Resources prices new deal, bonds jump higher; Energy XXI weakens; Sabine ends firmer
By Stephanie N. Rotondo
Phoenix, April 22 – Commodity names were eyed in the distressed debt market on Wednesday amid a round of credit-specific news.
FMG Resources was quite active – and quite better – on the day as the company sought to raise money via the high-yield market. The offering marked the second time the company has attempted to tap the markets.
Proceeds from the new deal will be used to take out the 6% notes due 2017 and the 6 7/8% notes due 2018.
Meanwhile, Energy XXI paper finished the session with a weaker tone. The downward move came as the company said at a conference that it was looking into selling midstream and noncore assets to help improve its balance sheet.
The company also said it was considering further bond sales. It sold $1.45 billion of 11% notes due 2020 on March 5.
Also in the oil and gas arena, Sabine Oil & Gas Corp.’s bonds were seen edging higher after the company said it was exercising its 30-day grace period on an interest payment due on a term loan.
One trader speculated that the gains could be due to the bonds trading flat, or without accrued interest, though he was not sure if that was the case.
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