Distressed debt slightly better, active issues in decline; commodities remain on the radar

By Stephanie N. Rotondo

Phoenix, May 27 – There was evidence of strength in the distressed debt market on Wednesday, but some of the more actively traded names bucked the trend.

Take Midstates Petroleum Co. Inc. A trader said both the 10¾% notes due 2020 and the 9¼% notes due 2021 on the busier side, but closing a few points lower.

Last week, the company concluded a series of transactions that added $420 million in liquidity to its coffers.

Also in the oil and gas realm, Lightstream Resources Ltd.’s 8 5/8% notes due 2020 were seen dropping 7 points to 71¼.

There was no fresh news out on the Canadian oil and gas producer, but the company did amend a credit facility last week.

Elsewhere in commodities, continued weakness in coal prices remained unfavorable for Peabody Energy Corp. bonds.

And in rare earth metals, MolyCorp Inc.’s 10% notes due 2020 softened a deuce to 44.

Away from losers in the commodity space, Verso Paper Corp.’s 11¾% notes due 2019 declined nearly 2 points to 72¼, according to a trader.

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