Distressed credits mostly lower, including oil, coal; Puerto Rico slips; LiqhtSquared lines up loan

By Paul Deckelman

New York, May 11 – The distressed debt space was seen generally easier on Monday, in line with a mostly lower junk bond market.

Among the notable losers were such coal-space names as Alpha Natural Resources Inc. and Arch Coal Inc., as well as Walter Energy Inc.

Iron ore producer Cliffs Natural Resources Inc.’s notes were holding steady at recent lower levels.

Traders saw oil names such as SandRidge Energy Inc. and Energy XXI also lower.

In the municipal bond market, traders noted the recent erosion of Puerto Rico’s general obligation bonds, as the troubled island commonwealth’s legislators continue their wrangling over a tax-overhaul proposal.

In the bank loan market, traders said that LightSquared Inc. has a bank meeting coming up this week to launch a big new bond deal that will be used to fund the bankrupt wireless communications company’s exit from Chapter 11 and refinance its debtor-in-possession facilities.

© 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.