Distressed energy credits rise as oil rallies over 5%; Peabody mixed; FMG paper rebounds

By Stephanie N. Rotondo

Phoenix, April 6 – A gain in oil prices gave a boost to the distressed debt arena on Monday.

Investors were also shaking off Friday’s weak jobs report, which showed 126,000 nonfarm jobs being added in March – about 120,000 less than expected. The results have caused some to speculate that any plans the Federal Reserve had to raise interest rates could be stymied.

Despite the firm tone of the day, the market was still suffering from a post-holiday hangover.

Of the day’s dealings, the energy space was getting the lion’s share of the gains.

At one desk, a market source saw SandRidge Energy Inc.’s 7½% notes due 2021 rising a deuce to 65½ bid.

In the preferred stock space, Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) improved 71 cents, or 3.44%, to $21.36, while Goodrich Petroleum Corp.’s 9.75% series D cumulative preferreds (NYSE: GDPPD) put on 31 cents, or 3.93%, to close at $8.19.

Away from oil, coal producer Peabody Energy Corp. saw its 6½% notes due 2020 inching up to 59½ bid. However, another trader saw the 10% notes due 2022 – a $1 billion deal that came March 5 – holding steady at 86.

Aside from energy, FMG Resources’ debt was “creeping back up,” a trader said, through there was no specific news to act as a catalyst.

© 2015 Prospect News.
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