Whiting eyed as company shores up liquidity; Scientific Games active after downgrade

By James McCandless

San Antonio, March 30 – During the Monday distressed debt session, energy remained the largest attention getter as the sector saw more weakness.

Whiting Petroleum Corp.’s notes varied after the company announced that it drew from its credit facility in order to boost liquidity.

The 6¼% senior notes due 2023 gained 2 points to close at 11 bid. The 6 5/8% senior notes due 2026 moved down 2¾ points to close at 6¾ bid.

After the close on Friday, the Denver-based independent oil and gas producer announced that it drew $650 million from its credit facility.

The move was to boost liquidity and make sure that it has the ability to fund its ongoing operations.

Some of its structure is set to mature this week, namely a convertible security.

“It’s hard to see how they go forward without a restructure,” a trader said. “With them and other producers, there’s also a going-concern issue if oil prices hold at these low levels.”

Meanwhile, gaming name Scientific Games Corp.’s notes were active and mixed after receiving a ratings downgrade.

The 5% senior secured notes due 2025 added 1¾ points to close at 87¼ bid. The 7% senior notes due 2028 lost ¼ point to close at 63 bid.

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