Distressed bonds begin week with soft tone; Midstates interim CEO to resign; Vantage dips

By Stephanie N. Rotondo

Phoenix, March 9 – The distressed debt market ended softer Monday, even as the equity markets popped in celebration for the sixth anniversary of the bull market.

Midstates Petroleum Co. Inc.’s bonds followed the trend of the day – as did most of the energy space – as the company announced a director and chief executive officer succession plan.

Last week, the company delayed releasing its latest quarterly results.

Midstates Petroleum’s 10¾% notes due 2020 were “quite active,” a trader said, calling the issue off 2¾ points at 63 7/8.

Another trader deemed the issue as “fairly active.” He said the issue was trading “towards 61” by the end of the day, down from a 63 to 64 context.

Vantage Drilling Co. was also weaker, as investors mulled the company’s earnings from Friday.

The results came in line with analysts’ estimates.

A trader said Vantage Drilling’s 7 1/8% notes due 2023 fell a point to 59 in Monday trading.

In other commodities, Cliffs Natural Resources Inc. was drifting down, leading one trader to wonder if the company’s recently announced tender offer was hitting snags.

As for the rest of the energy space, most names were ending with a softer tone.

For its part, oil prices ended the day mixed.

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