Oil surge bodes well for energy; Arch reports smaller loss, cuts dividend; Cliffs firms

By Stephanie N. Rotondo

Phoenix, Feb. 3 – The distressed debt market was “feeling better today,” a trader said Tuesday, following in line with a huge jump in equities that was spurred in large part by another surge in oil prices.

“Oil continued its ascent,” another trader said. “Short covering, I guess. But all those energy bonds traded [up] with it.”

Along with the oil price gains, a smaller-than-expected quarterly loss from Arch Coal Inc. helped push up the entire coal sector. Even iron ore producer Cliffs Natural Resources Inc. was trending higher, despite reporting a wider loss in the fourth quarter.

The firm tone of the day even helped Alta Mesa Holdings LP’s 9 5/8% notes due 2018 recover ground lost Monday on the back of news that its planned sale of certain Eagle Ford Shale assets had been terminated.

A trader said the bonds “bounced back” 7 points to 59. The paper had lost as much as 30 points in the previous session.

iHeartMedia Inc. debt was also rebounding Tuesday. It was reported Monday that a sale of Clear Channel Outdoor’s European advertising unit was delayed due to a declining euro and the bonds fell in response.

Come Tuesday, the 14% notes due 2021 were seen up 1½ points at 80¼, while the 10% notes due 2018 were called 2 points better at 86.

The 7¼% notes due 2027 edged up half a point to 81, according to a trader.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.