Frontier busy again, but little changed; Alliance One firms; oil gains help E&P space

By Stephanie N. Rotondo

Seattle, July 12 – Frontier Communications Inc. bonds continued to take up a bulk of the day’s trading in the distressed debt market on Wednesday.

“They were active, but unchanged,” a trader said, seeing the paper holding around 89½.

The name had been weaker on Tuesday. One market source speculated that the negative tone might have been tied to reports that Microsoft was looking to fund projects that would expand broadband access into rural areas. Given Frontier’s focus on wired voice and data lines, a move could weigh on the company’s already fragile bottom line.

Meanwhile, Alliance One International Inc.’s debt was modestly better on the day.

Like Frontier, there was no specific news Wednesday to boost the name.

A trader saw the 9 7/8% notes due 2021 ticking up nearly half a point to 88¼.

As for the E&P space, it was trending mostly higher as oil prices climbed a touch.

A trader said EP Energy Corp.’s 8% notes due 2025 gained nearly 2 points, closing at 76½. Noble Energy Inc.’s 7¾% notes due 2024 added a point to finish at 80½.

California Resources Corp.’s 8% notes due 2022 were another gainer, according to sources.

At one desk, the paper was seen up almost a deuce at 63½ bid.

Denbury Resources Inc.’s 6 3/8% notes due 2021 also managed to push upward. A source saw the notes firm a point to 58 bid.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.