Navistar bonds dip on profit taking; Intelsat continues to climb; oil and gas names firm

By Stephanie N. Rotondo

Seattle, Sept. 7 – The distressed bond market had a slightly firmer tone on Wednesday, though traders noted that most of the day’s activity was centered on new high-yield issues and higher quality paper.

Navistar International Corp. bonds – which rose 15 points in the previous session on news Volkswagen was taking an equity stake in the company – came in a little during the midweek session.

“They gave back a little,” a trader said of the 8¼% notes due 2020, seeing the debt trade with a 97 handle. He added that the 1-point decline was “probably” due to profit taking.

Another trader said there were “a bunch of trades again today” in the issue, which he saw down half a point at 97¼.

Intelsat SA debt meantime traded up with the market, though a trader remarked that the name was “not overly active.”

The trader deemed the 7¼% notes due 2020 “up a little bit” at 78¾ bid, 79 offered.

Another trader pegged that issue at 78¾, a gain of a quarter-point on the day. The trader also saw the 7½% notes due 2021 rise a similar amount to 75¾.

Crude oil prices got a boost on Wednesday, which helped the struggling oil and gas arena gain ground – or at least hold steady.

A trader said EP Energy Corp.’s 9 3/8% notes due 2020 were unchanged at 65, though Whiting Petroleum Corp.’s 5% notes due 2019 added a point to close at 92½.

© 2015 Prospect News.
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