NGL bonds rally on deal; Hertz up following court order; Peabody Energy, Frontier rise

By Cristal Cody

Tupelo, Miss., Jan. 21 – NGL Energy Partners LP’s existing bonds climbed in heavy trading volume on Thursday as the company launched a new $2.05 billion offering of first-lien senior secured notes due 2026.

NGL Energy’s 7½% senior notes due 2023 (Caa1/CCC+) jumped 10 points “on the back” of the new deal to trade up to the 92 to 92½ area over the morning, a source said.

By late afternoon, the 2023 notes had climbed as high as 94 bid and were last seen in heavy secondary action at 93½ bid, up 11½ points on the day.

NGL’s 7½% senior notes due 2026 (Caa1/CCC+) also saw strong secondary volume and were seen trading in the 82 range after climbing to as high as 83½ bid, a source said.

The 2026 notes traded Wednesday at 74 bid.

Separately, coal producer Peabody Energy Corp.’s 6 3/8% senior secured notes due 2025 (Caa1/CCC-) climbed higher over the day, a market source said.

The notes traded at 66 bid, better than where the issue was last seen in heavy secondary volume on Friday at 61¼ bid.

And Hertz Corp.’s 5½% notes due 2024 improved to 61½ bid from 58¼ bid in the prior session, according to a market source.

Additionally, Frontier Communications Corp.’s distressed paper saw gains on Thursday.

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