Occidental notes down after dividend news; U.S. Steel dips in manufacturing space

By James McCandless

San Antonio, Sept. 21 – The distressed debt market turned its attention on the energy and manufacturing sectors on Monday.

Occidental Petroleum Corp.’s notes were pushed down after news broke that the company would pay out $200 million in dividends in cash rather than common stock.

The 2.9% senior notes due 2024 slipped 1½ points to close at 86¾ bid. The 2.7% senior notes due 2022 lost 1 point to close at 94½ bid.

During the Monday session, news broke that the Houston-based independent oil and gas producer will pay $200 million in preferred stock dividends to Berkshire Hathaway in cash rather than common stock.

The company started paying the dividend in common stock since April in an attempt to preserve liquidity in the face of collapsing energy prices.

Meanwhile, manufacturer United States Steel Corp.’s notes dipped as market optimism waned in the face of new coronavirus data.

The 5% senior notes due 2026 dived 6½ points to close at 84½ bid. The 6¼% senior notes due 2026 were docked 1¼ points to close at 70¼ bid.

The Pittsburgh-based steelmaker’s structure, along with other manufacturing names, were being pushed downward as the market takes in new coronavirus data from Europe.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.