Ensco, Rowan notes rise on merger news; PHI paper slides as tender offer extended again

By James McCandless

San Antonio, Oct. 9 – The distressed debt market began a short week abuzz about energy names.

Leading oil names, Ensco plc’s notes gained after the company announced that it would be purchasing Rowan Cos. plc, whose notes also improved, for $2.38 billion.

Ensco’s 5.2% notes due 2025 gained 1½ points to close at 88 bid. The 4½% notes due 2024 rose 1¼ points to close at 86¾ bid.

Rowan’s 4¾% notes due 2024 added ½ point to close at 90 bid. The 5.85% bonds due 2044 jumped up 3 points to close at 79½ bid.

PHI, Inc.’s paper slipped after again extending the deadline for a cash tender offer.

The 5¼% notes due 2019 lost ¾ point to close at 94 bid.

After bedding retailer Mattress Firm filed for bankruptcy on Friday, producer and one-time supplier Tempur Sealy International, Inc.’s notes have been in decline.

Elsewhere, American Tire Distributors’ issues gained on Friday’s news that the company reached an agreement with its senior creditors on its restructuring deal.

The 10¼% notes due 2022 picked up 2 points to close at 23 bid.

In retail, Sears Holdings Corp.’s paper saw a bump after the company announced the appointment of a new member to its board of directors who brings expertise in restructuring corporations.

© 2015 Prospect News.
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