Oasis Petroleum notes drop as interest payments deferred; U.S. Steel paper improves

By James McCandless

San Antonio, Sept. 18 – At the end of the week in the distressed debt space, the focus turned to energy and manufacturing names.

Oasis Petroleum Inc.’s notes dropped after the company reported that it would be deferring interest payments on two tranches.

The 6 7/8% senior notes due 2022 gave up 1½ points to close at 23 bid. The 6 7/8% senior notes due 2023 shed 1 point to close at 18½ bid.

During Friday activity, the Houston-based independent oil and gas producer announced that it had elected to enter into a 30-day grace period and defer making interest payments due Sept. 15 on the 2022 notes and its 2.625% senior convertible notes due 2023, Prospect News reported.

The company said that it was holding talks with its lenders and a group of ad hoc noteholders on a comprehensive financial restructuring to strengthen its balance sheet and financial position.

Steelmaking name United States Steel Corp.’s issues improved after the company released an optimistic third-quarter outlook.

The 6 7/8% senior notes due 2025 rose 4 points to close at 77½ bid. The 6¼% senior notes due 2026 pushed up 2¾ points to close at 71½ bid.

On Friday morning, the Pittsburgh-based steel manufacturing name released guidance for the third quarter, showing an optimistic forecast.

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