Occidental Petroleum notes gain as new chairman named; Rayonier down as ratings lowered

By James McCandless

San Antonio, March 24 – Tuesday’s session saw a rebound for markets as the distressed debt space continued to focus on energy names.

Occidental Petroleum Corp.’s notes were better by the close after announcing the appointment of a former executive to its board of directors.

The 2.9% senior notes due 2024 inched up ¼ point to close at 54¾ bid. The 2.7% senior notes due 2022 rose 2½ points to close at 63 bid.

On Tuesday morning, the Houston-based independent oil and gas producer announced that it would name former chief executive officer Stephen Chazen as its non-executive chairman of the board of directors.

The move is a bid to quell a long dispute with activist investor Carl Icahn, who owns about a 10% stake in the company.

After months of applying pressure on Occidental to improve operations, over the weekend the two sides neared a deal that would give Icahn two or more board seats.

Meanwhile, chemicals name Rayonier Advanced Materials Inc.’s paper trailed as it received a ratings downgrade.

The 5½% senior notes due 2024 declined by 5 points to close at 42 bid.

The Jacksonville, Fla.-based chemical products producer saw negativity as its Rayonier A.M. Products Inc. segment received a ratings downgrade from Moody’s Investors Service.

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