iHeartMedia debt rises as more advisers hired; Breitburn, SandRidge enter bankruptcy

By Stephanie N. Rotondo

Seattle, May 16 – The distressed debt market was again seeing big pockets of activity on Monday.

iHeartMedia Inc. experienced “significant action,” a trader said, as it was reported that the multimedia company was bringing on advisers to deal with its hefty debt. One option being bandied about was a debt repurchase, which gave a couple of the company’s outstanding issues a boost.

SandRidge Energy Inc. and Breitburn Energy Partners LP both announced bankruptcy filings on Monday. In the wake of the news, both companies saw the debt rising, though Breitburn’s preferred units ended weaker.

Oil-linked names in general were having a decent day, as crude oil prices ticked up nearly 3.5% to $47.82 a barrel. The gains were attributed in part to ongoing production outages in Nigeria and Canada.

Also sparking the rise was a new report from Goldman Sachs that said the outages, along with pared production in the U.S., could mean a supply deficit.

A trader said Whiting Petroleum Corp.’s 5% notes due 2019 added 2½ points to close at 86½, while the 7¾% notes due 2021 improved “almost 4 points” to 81 3/8.

In Chesapeake Energy Corp. paper, a trader said the 8% second-lien notes due 2022 had “pretty good volume,” pushing up 1½ points to 69.

Another trader said California Resources Corp.’s 8% second-lien notes due 2022 “had a big day,” trading at least 24 times in size and adding 1½ points to end at 61¼.

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