Community Health sees mixed movement on $425 million sale; oil back-and-forth; coal down

By Colin Hanner

Chicago, Nov. 18 – Coal, and especially oil, spaces experienced some fluctuation on Friday, and a small asset sale for a regularly-traded distressed name capped off the week in the distressed high-yield arena.

“Community Health Systems [Inc.] was an up-and-down roller coaster,” said a trader, after the company announced an asset sale of West Coast facilities for over $400 million. Its bonds fluctuated throughout the day, and several traded lower than Thursday’s levels.

On Thursday, coal plummeted to lows not seen in months, and producers Peabody Energy Corp. and Murray Energy Corp. continued to reflect the sector’s sentiment into Friday.

A market source said that Peabody Energy’s 6½% notes due 2020 were down ½ point to 56½, and the 10% notes due 2022 were down 2¾ points 80¾.

Oil went through up-and-down motions throughout the day, finally finishing up on the day after news surfaced that Organization of Petroleum Exporting Countries member Algeria announced its confidence in a supply cut deal at the end of the month after meeting with Russia.

Stone Energy Corp. and GenOn Energy Inc. echoed the morning and afternoon trends with movement in both directions.

French-based geophysical service company CGG SA saw an increase on the day, perhaps answering the uptick in U.S. oil rigs added in the week.

Intelsat SA quieted after seeing daily jumps for the past week.

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