Linn Energy up as company delevers; Key Energy bonds fall on wider loss; Arch limps along

By Stephanie N. Rotondo

Phoenix, July 30 – The distressed commodity space was jumping around Thursday on a slew of fresh earnings.

Lots of ups today,” a trader said.

In the oil and gas space, Linn Energy LLC debt jumped 4 to 7 points on its earnings announcement. In the release, the Houston-based company also said that it was suspending its equity dividend and that it had repurchased about $599 million of senior notes at a 35% discount.

Key Energy Services Inc. also posted numbers, showing a wider loss and weaker revenues. As a result, those bonds took a nearly 5-point hit on the day.

In the coal arena, Arch Coal Inc. came out with its earnings, also reporting a wider loss. But a trader noted that activity in the name was thin, attributing the lack of volume to a debt exchange that is currently being disputed.

Away from commodities, Getty Images Inc.’s 7% notes due 2020 improved, which a trader said was due to earnings.

The figures are not available to the public.

The trader said the debt was “up as much as 10 [points] but closed off the highs.” They ended up about 5 points, he said.

Another trader called the issue up 4½ points at 42½.

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