Talen Energy to be taken private, bonds fall; Chemours under pressure; oil and gas gains

By Stephanie N. Rotondo

Seattle, June 3 – Fresh news remained the main driver of names in the distressed debt market on Friday.

Take, for instance, Talen Energy Corp. Its bonds were weakening in the final trading session of the week after it was reported that Riverstone Holdings LLC plans to take the merchant power company private for $1.8 billion.

Chemours Co. also continued to be active – and lower – following Citron Research’s report out Thursday that deemed a bankruptcy on the horizon.

Meanwhile, oil and gas names were generally firm on the day, even as domestic crude prices drifted downward.

The weakness in the commodity came as Baker Hughes said the active U.S. drill rig count increased by nine last week, the first gain in 11 weeks.

Also weighing on oil prices was a weaker-than-expected jobs report.

A trader said Whiting Petroleum Corp.’s 5¾% notes due 2021 were steady at 85¼, though its 5% notes due 2019 inched up half a point to 90½.

Chesapeake Energy Corp. was meantime ticking upward, its 8% second-lien notes due 2022 adding half a point to end at 81 1/8 and its 6 5/8% notes due 2020 gaining almost a point to 68 1/8.

Also up were Southwestern Energy Co.’s 4.1% notes due 2022, which put on almost 3 points to finish at 86¼.

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