Community Health bonds still busy, weak; Concordia loses steam; coal names mostly better

By Stephanie N. Rotondo

Seattle, Sept. 20 – The distressed debt market had a firm tone on Tuesday, although there was no fresh news to spur the gains.

However, the broader markets were also trending positive, as investors wait to see what the Federal Reserve will say at its latest policy meeting.

That announcement is slated to come Wednesday afternoon.

The healthcare sector continued to be in focus in Tuesday trading. Community Health Systems Inc. – which was active on Monday on word the hospital operator was exploring its options – again experienced “tons of trades,” according to a trader.

The trader said at least $70 million of the 6 7/8% notes due 2022 traded, falling over half a point to 84 3/8.

Also in the healthcare space, Canadian drugmaker Concordia International Corp.’s bonds turned weaker Tuesday after rebounding on Monday.

The paper had taken a considerable beating on Friday when the United Kingdom said it was considering legislation that would bar exorbitant price increases on certain drugs.

Coal producers also continued to see some action, though perhaps not as much as its healthcare peers.

Arch Coal Inc. bonds had a “monster move,” a trader said, at least on a percentage basis.

He called the 7% notes due 2019 up almost a point at 5, while the 7¼% notes due 2020 ticked up a shade to 5 1/8.

Peabody Energy Corp.’s 6% notes due 2018 were meantime unchanged at 24½, the trader said.

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