FMG Resources mixed on chatter related to Chinese interest; Tronox ticks up post-earnings

By Stephanie N. Rotondo

Phoenix, Aug. 5 – The distressed debt market was mixed in midweek trading, though perhaps more toward the softer side, according to market sources.

FMG Resources’ bonds were busy, but mixed, as the market reacted to chatter that China’s Hebei Iron and Steel Group and Tewoo Group had approached the Australian iron ore producer about purchasing stakes in some of the company’s assets.

One trader said the 8¼% notes due 2019 slipped “just a shade” to 74¾, while the 9¾% notes due 2022 rose 1½ points to 95.

Bloomberg first reported the news, citing “people with knowledge of the matter.” FMG later said publicly that it was “open to commercial discussions” but that there was no such deal at this time, nor was it imperative to ink one.

Among other recently topical commodity names, bonds were seen ending just as mixed as FMG.

Oil and gas bonds had no clear direction, even as crude oil prices rallied slightly by the end of business.

In the coal arena, recently bankrupt Alpha Natural Resources Inc. saw its 6¼% notes due 2019 tick up a touch to 4 3/8. But in Peabody Energy Corp. paper, the 6½% notes due 2020 were seen falling nearly a point to 28¼, while the 6¼% notes due 2021 rose a point to 28¾.

Chemical manufacturer Tronox Ltd.’s 6 3/8% notes due 2020 inched up a bit on the heels of the company’s latest quarterly results.

The results, which were released late Tuesday, showed higher revenue, but a wider loss.

© 2015 Prospect News.
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