Distressed bonds weaker, but beat broader markets; iHeart firms after outdoor asset sale

By Stephanie N. Rotondo

Seattle, Jan. 7 – The distressed debt market weakened further in Thursday trading, though it held in better than some, according to traders.

“The whole market kind of got whacked today,” a trader said, as equities dropped 2% to 3% and domestic oil prices fell 2.36% to $33.17 a barrel.

“Despite how bad the market was, it seems like some things held up OK,” another trader said. “I think a lot of guys were hiding given what equities were doing, but I also feel like our market held up much better than expected.”

Even the troubled energy space managed to contain its losses for the day.

Chesapeake Energy Corp.’s new 8% second-lien notes due 2022, for instance, traded unchanged to off just a point, traders reported.

Oasis Petroleum Inc. ended weaker as well, though more so than Chesapeake. The 6 7/8% notes due 2022 lost nearly 3½ points to close at 62¾, a trader said.

Among offshore oil producers, a trader said there has been a “big seller” of Atwood Oceanics Inc. paper in the last couple of days. He said the 6½% notes due 2020 traded down “another 3 points” to 49.

Pacific Drilling SA’s 5 3/8% notes due 2020 were meantime 2¼ points weaker at 39¼.

Bucking the day’s trend, iHeartMedia Inc. bonds continued to improve after Clear Channel Outdoor said it had sold $458.5 million in billboard assets to Lamar Advertising Co.

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