Murray Energy debt firms amid overall subdued summer trading; Key Energy dips

By Stephanie N. Rotondo

Seattle, Aug. 25 – The distressed debt market again saw muted trading on Thursday, attributed largely to it being the end of summer.

“Nothing was active,” a trader said of the day’s session. “It’s just brutal this week, brutally slow.”

Of the distressed issues eyed, energy names continued to take center stage. However, the most popular names in Thursday trading were more off-the-run issues than the typical go-to traders.

For instance, a trader said Murray Energy Corp. was the most active name in the distressed space, as its 11¼% notes due 2021 ticked up “a few points” to 44½.

Last week, the name had gained traction on word it had secured some credit amendments. The St. Clairsville, Ohio-based coal company also reported earnings on Aug. 15, but as they are private, it is unclear what the numbers showed.

A trader said he was not sure “what is going on behind the scenes. It could be someone trying to accumulate more [bonds] but there isn’t a lot of supply around.”

Meanwhile, Key Energy Services Inc., a Houston-based oil rig services provider, said late Wednesday that it planned to file a prepackaged bankruptcy plan.

Come Thursday, the 6¾% notes due 2021 were trading down about 3 points to 30½, a trader said. That was up form the day’s low of 29¾.

However, the trader – as well as a few others – remarked that there were no round-lot trades during the day.

© 2015 Prospect News.
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