Occidental Petroleum better despite downgrade; Pyxus eyed as alternatives reviewed

By James McCandless

San Antonio, March 26 – In the second half of the week, the distressed debt space continued to focus on energy names and newsmakers as a positive tone spread.

Occidental Petroleum Corp.’s notes continued to lead the space, ending better despite receiving another downgrade.

The 3.4% senior notes due 2024 picked up 6¾ points to close at 51 bid. The 2.7% senior notes due 2022 added 2¼ points to close at 66¾ bid.

Before the open on Thursday, the Houston-based independent oil and gas producer received its third ratings downgrade in the last week.

S&P Global Ratings lowered all of the company’s ratings, including its issuer credit rating and unsecured issue-level ratings, giving it junk status.

Moody’s Investors Service and Fitch Ratings made similar cuts in recent days.

“It’s been the most popular name in recent days,” a trader said. “It’s a symbol of how E&P names are getting hammered.”

Meanwhile, tobacco name Pyxus International, Inc.’s notes diverged after the company announced a strategic alternatives review.

The 9 7/8% notes due 2021 shaved off ¼ point to close at 18¾ bid. The 8½% notes due 2021 held level at 85 bid.

The Morrisville, N.C.-based tobacco name announced after the Wednesday close that it would be starting a strategic alternatives review.

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