Transocean notes better amid contract news; American Airlines eyed in travel space

By James McCandless

San Antonio, Nov. 18 – The distressed debt market saw energy and travel names take the day’s attention.

Transocean Ltd.’s notes ended in a better position amid the company’s news of two contract extensions.

The 5 7/8% senior secured notes due 2024 moved up 3¾ points to close at 70¼ bid. The 11½% senior notes due 2027 rose 2½ points to close at 42½ bid.

On Wednesday, the Steinhausen, Switzerland-based contract driller announced that it had received two contract extensions to add to its backlog.

Brazilian oil name Petrobras extended the contracts for two of the company’s drillships, exercising a 680-day fixed price option for the Deepwater Corcovado and an 815-day fixed price option for the Deepwater Mykonos.

The extensions represent a $297 million addition to its backlog.

In the travel space, American Airlines Group Inc.’s notes diverged after headlines about the Boeing 737 Max.

The 5% senior notes due 2022 grabbed 1¼ points to close at 78½ bid. The 11¾% senior notes due 2025 fell 1 point to close at 107 bid.

On Wednesday morning, news broke that the Federal Aviation Administration had cleared the troubled Boeing 737 Max line of airplanes to return to the air after months of being grounded.

American Airlines owns about 24 of the airplanes.

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