Breitburn rises on EIG investment; Peabody tender done, bonds mixed; Murray Energy gains

By Stephanie N. Rotondo

Phoenix, March 30 – The distressed debt market was again zeroing in on the energy arena Monday.

The marketplace ended with a firmer feel, even as oil prices drifted lower. The commodity was again under pressure as a deadline for talks on Iran’s nuclear program was fast approaching.

West Texas Intermediate crude drifted down 35 cents to $48.52 per barrel for May delivery. Brent crude dipped 19 cents to $56.22.

In addition to the oil price decline, several energy companies had news of their own Monday, resulting in a move one way or another.

Breitburn Energy Partners LP, for instance, got a sizable boost as the company announced a $1 billion investment from a group led by EIG Global Partners.

In the coal space, Peabody Energy Corp.’s debt was mixed after the company issued its final tender results.

And, sector peer Murray Energy Corp. saw its bonds trending higher after the company announced it had increased the amount to be paid in its own tender offer.

Murray first announced the tender on Thursday.

Breitburn Energy Partners’ bonds were boosted Monday on news the company was getting a $1 billion investment from a group led by EIG Global Partners.

A trader said the 8 5/8% notes due 2020 put on over 3 points to close at 73¼. The 7 7/8% notes due 2022 earned a like amount, ending at 73½.

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