Alta Mesa dives as Eagle Ford sale nixed; iHeart down; MolyCorp up with production results

By Stephanie N. Rotondo

Phoenix, Feb. 2 – The distressed debt market experienced a Super Bowl hangover on Monday, and inclement weather from the Midwest to the Northeast was not helping.

“It was an abysmal Monday following the Super Bowl,” one trader said. “It seemed like nobody was around.”

Another trader noted that desks started to empty in the afternoon, as the weather began to get worse.

But despite the limited liquidity, Monday was jam-packed full of news that drove certain names all around.

Alta Mesa Holdings LP, for instance, got whacked in trading after the company said a sale agreement of its Eagle Ford asset was terminated.

The company’s bonds were seen down as much as 30 points on the day.

iHeartMedia Inc.’s paper was also weaker, as a sale of Clear Channel Outdoor’s European advertising unit was put on hold due to a weakening euro.

On the upside, MolyCorp Inc. got a sizable boost as the company released its latest production report, showing an increase in production from the previous quarter.

Also higher – or unchanged, depending on whom you asked – were RadioShack Corp.’s bonds. The company is said to be in talks to sell half of its store leases to Sprint.

A trader said RadioShack’s 6¾% notes due 2019 rose 3 points in Monday trading, as the company continued talks with Sprint.

However, another trader said the debt was unchanged, trading in a 15 to 16 context.

© 2015 Prospect News.
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