Quicksilver Resources takes nosedive; MolyCorp still notable, unchanged; Nortel holds in

By Stephanie N. Rotondo

Phoenix, Aug. 8 – Quicksilver Resources Inc. was a big loser in the distressed debt market in an otherwise unchanged day.

A trader said the name “has been getting hit since numbers came out” on Tuesday. “Somebody was puking them out today.”

He saw the 9 1/8% notes due 2019 falling 5 points to 80, while the 7 1/8% notes due 2016 declined 7 points to 73.

Another market source pegged the 9 1/8% notes at 80 bid, 80½ offered, which compared to 85 bid, 85¼ offered previously. The 7 1/8% notes were placed around 73 versus prior levels around 80.

For the quarter, the oil and natural gas driller reported earnings per share of 7 cents, which came in line with analysts’ expectations. But revenue fell nearly 10% to $107 million.

Elsewhere in the mining space, MolyCorp Inc.’s 10% notes due 2020 finished the day “about in line, maybe a smidge lower” than Thursday’s close, a trader said.

He saw the issue in an 86½ to 87 context.

MolyCorp, a rare earth minerals and metals mining company, has been notable for most of the week as the company said Wednesday that it had secured $400 million in financing from Oaktree Capital Management LP.

A trader said Nortel Networks Corp. was in the news, as the judge overseeing the company’s U.S. bankruptcy case indicated he might pressure creditors to settle in regards to how to pay out $7 billion.

© 2015 Prospect News.
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