Peabody bonds improve on asset sale news; TerraForm shake-up boosts debt; Chesapeake up

By Stephanie N. Rotondo

Seattle, Nov. 23 – Distressed debt investors remained focused on the energy sector Monday as fresh news was helping to move things around.

A trader said Peabody Energy Corp.’s bonds were “pretty heavily traded” after the company announced asset sales totaling $358 million in cash.

The debt was trading up on the news.

Meanwhile, TerraForm Power Inc. saw its bonds improving after parent company SunEdison Inc. announced a management shake-up. TerraForm bonds, as well as SunEdison’ convertible debt and stock, have been hammered of late as hedge funds reportedly bail out of the renewable energy producer.

In the oil space, the recently clobbered Chesapeake Energy Corp. rebounded a bit as crude oil prices experienced a modest – and brief – rally on word Saudi Arabia would work with other OPEC partners to stabilize oil prices.

Though oil prices did initially gain on the news, West Texas Intermediate crude ultimately ended down nearly 3% at $39.39 a barrel.

Elsewhere, a trader said Breitburn Energy Partners LP’s 8 5/8% notes due 2020 closed around 30, down “12 and change [points]” from previous trades around 40 “several weeks ago.”

The trader noted that his firm believed the issue would wane because “we couldn’t find a buyer.” However, he was surprised at how much the paper had declined.

Also, Natural Resource Partners LP’s 9 1/8% notes due 2018 was seen falling 4 points to 67¼.

“That one doesn’t trade much though,” a trader remarked.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.