SandRidge bonds drift lower; iHeartMedia loses ground; GenOn Energy debt rises

By Stephanie N. Rotondo

Seattle, May 17 – Distressed debt investors continued to focus on names that had news out on Monday, including SandRidge Energy Inc. and iHeartMedia Inc.

For its part, SandRidge said Monday that it had filed for bankruptcy, as weak oil prices pressured its balance sheet. Initially, the news gave the Oklahoma City-based company’s debt a pop, but the bonds were in retreat come Tuesday.

“They were pretty active again,” a trader said of the bonds, seeing the 8¾% notes due 2020 retreating a point to 41¼.

The 7½% notes due 2023 were also weaker, though slightly, at 5 5/8.

Another market source pegged the 7½% notes due 2021 at 6 bid, off a point.

It was also reported Monday that iHeart had brought on more advisers to help the San Antonio-based multimedia company deal with its $21 billion debt load. Talk of a potential debt repurchase gave its debt a boost, but like SandRidge, it was coming in on Tuesday.

A trader said the 14% notes due 2021 drifted off nearly 2 points to 35½.

As for Tuesday’s headlines, GenOn Energy Inc. said it had inked a deal to sell certain assets in an all-cash deal. That name was also busy during the session, as its bonds pushed higher.

A trader saw the 9½% notes due 2018 rising a point to 84½, as the 8½% notes due 2021 added 3 points to close at 75.

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