Energy weakens as oil prices deteriorate further; Getty Images CEO to exit, bonds decline

By Stephanie N. Rotondo

Phoenix, March 13 – The distressed debt market was weighed down further Friday as oil prices continued to retreat.

“A lot of things are getting hit today,” a trader said.

The decline in prices came as the International Energy Administration warned that the U.S.’ supply glut remained a concern. That followed the U.S. Energy Information Administration’s report on Wednesday that showed supplies at an 80-year high.

West Texas Intermediate crude fell $1.89, or 4.02%, to $45.16 per barrel. Brent crude dropped $2.42, or 4.24%, to $54.66.

Among energy names, activity in Peabody Energy Corp. paper was popping, according to traders.

One trader said the $1 billion of 10% senior secured second-lien notes due 2022 – a deal priced March 5 at 97.566 – fell “a couple points” to 93½ bid, 94 offered.

Linn Energy LLC was also weaker, as a trader saw the 6½% notes due 2021 diving 4¼ points to 75.

Elsewhere, Getty Images Inc.’s 7% notes due 2020 took a hit Friday as the company disclosed that its chief executive officer was stepping down.

“They continue to deteriorate,” a trader said, calling the issue off “a few more points.”

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