Bombardier bonds fly higher on investment chatter; Magnum Hunter debt declines, equity up

By Stephanie N. Rotondo

Phoenix, Oct. 5 – The distressed debt market was on the rise Monday amid a rally in the broader markets.

“Everything is up today,” a trader said. “Up, up, up.”

Still, most of the day’s activity was centered on higher-quality issues within the high-yield space, such as a new deal from Cablevision Systems Corp./Altice SA.

As for more distressed names, Bombardier Inc. was looking to climb higher during the session. Over the weekend, it was reported that the aircraft manufacturer was looking to Quebec’s public pension managers for a potential investment. Early Monday, ScotiaBank put out a report that claimed the company could run out of cash by mid-2016.

But even as most of the market ended with a firmer tone, some issues continued to feel the pressure.

U.S. Steel Corp.’s 7 3/8% notes due 2020, for instance, declined a touch to 78 3/8. Steelmakers have been struggling of late as cheaper imports have been dumped on the market and commodity prices have dwindled.

Magnum Hunter Resources Corp.’s debt structure continued to be weak on Monday, despite a gain in oil as well as a boost in the company’s common stock.

One distressed bond trader noted that the 9¾% notes due 2020 fell a quarter-point to 43¾.

The 8% series D cumulative preferreds (NYSE: MHRPD) were also weaker, finishing at $7.66, down 32 cents, or 4.01%.

However, the equity (NYSE: MHR) improved by 4.5 cents, or 9.14%, to close at 53.95 cents.

© 2015 Prospect News.
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