GenOn mixed after offering news; E&P drops; Community Health reacts to health care bill

By Colin Hanner

Chicago, May 4 – Earnings continued to pour in for companies in the distressed debt market on Thursday, but notable movement was seen in GenOn Energy, Inc. after a proposed offering announcement, as well as exploration and production names after crude oil futures touched lows not seen in months.

The subsidiary of Houston-based energy company, NRG Energy, Inc., GenOn Energy was “quite active,” a market source said, after the company announced it will commence an offering of $540 million of five-year senior secured first-lien notes.

With the news, the company announced the redemption or discharge of one of its outstanding sets of notes, prompting it to surge 20 points higher during intraday trading.

Oil was “getting smacked today,” a trader said, as West Texas Intermediate crude fell below $46 a barrel, a low it hadn’t touched since before the Organization of Petroleum Exporting Countries agreed to curb production in November.

California Resources Corp. was down a few round numbers, nearly dropping below a 70 benchmark, as was Noble International Holdings Inc. and Transocean Ltd.

A revised edition of the American Health Care Act passed the House on Thursday, though hospital groups, like Community Health Systems, Inc. reacted lightly, trading down fractionally on the session.

In the earnings sphere, iHeartMedia, Inc. announced its first quarter results, though its subsidiary iHeartCommunications, Inc. did not react harshly to the disappointing figures.

Frontier Communications Corp. “continued to be softer” post its earnings on Tuesday.

© 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.