Commodities mixed in week’s last full session; Longview Power pushes up loan deadline

By Stephanie N. Rotondo

Phoenix, April 2 – The distressed debt market ended Thursday still focusing on commodity names.

However, traders noted that liquidity was a little muted, given that the bond market will be closing early for the Good Friday holiday.

As for the day’s dealings, a trader noted that the iron ore arena “got beaten down a bit yesterday,” adding that the sector had “rallied back a bit.”

Come Thursday, the space was “holding about unchanged.”

One trader said FMG Resources was “fading,” seeing the 6% notes due 2017 losing 1½ points to end around 95.

However, he called the 8¼% notes due 2019 unchanged at 80.

The trader also saw sector peer Cliffs Natural Resources Inc.’s 5.95% notes due 2018 dropping 2½ points to 70.

At another desk, FMG’s 6 7/8% notes due 2022 were placed in the high-60s, while the 2017 paper was seen in a 95 to 96 context.

As for Cliffs’ debt, the market source said the 8¼% first-lien notes due 2020 “continued to trade down,” seeing the issue around 90½.

The 7¾% second-lien notes due 2020 meantime ended down about 3 points at 63 bid, 64 offered, the source said.

Meanwhile, Longview Power LLC accelerated the commitment deadline on its $275 million senior secured credit facility (B2/BB-) to 2 p.m. ET on Monday from Wednesday, a market source said.

The facility consists of a $25 million five-year revolver and a $250 million six-year term loan B.

© 2015 Prospect News.
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