Northern Oil notes down on asset acquisition; American Tire rebounds after weakness

By James McCandless

San Antonio, April 26 – The distressed debt market was relatively quiet, traders reported, despite earnings statements slated for this week.

Northern Oil and Gas, Inc.’s notes declined as the company announced that it had entered an agreement to purchase assets and acreage in the Williston Basin in North Dakota.

American Tire Distributor’s notes bounced back some after a two-day free fall after Goodyear severed ties with the company.

FirstEnergy Solutions’ paper was mixed after announcing Wednesday that the company has notified the government of its intention to deactivate three at-risk plants.

Intelsat SA’s notes were down. Recently a subsidiary was chosen to be part of a government project. Frontier Communications Corp.’s note issues were up as it searches for buyers for certain assets. Community Health Systems, Inc.’s paper was mixed in the health care space.

Minnetonka, Minn.-based oil and gas producer Northern Oil and Gas’ notes were down as reports confirmed that it had entered into an agreement with Salt Creek Oil and Gas, LLC to purchase assets in the Williston Basin in North Dakota.

The deal will be paid for with $40 million in cash and 6 million shares of common stock. Interim president Brandon Elliot said in a news release that the acquisition is part of its long-term acquisition strategy.

The 8% notes due 2020 fell about 1¼ points to close at around 93¼ bid.

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