U.S. Steel rises despite trade climate; Navios gains after asset manager buys stake

By James McCandless

San Antonio, May 16 – Names affected by an uncertain trade climate came into focus in Thursday’s distressed debt session.

United States Steel Corp.’s notes were on the rise despite uncertainty in the global trading climate.

In shipping, Navios Maritime Holdings Inc.’s issues were gaining after an asset manager purchased a stake in the name.

Meanwhile, in utilities, PG&E Corp.’s paper moved lower after California officials placed the blame for a 2018 wildfire on the name.

Drugmaker Teva Pharmaceutical Industries Ltd.’s notes closed mixed in a week of legal turmoil.

Sector peer Endo International plc’s issues were pushed upward.

Elsewhere, in energy, Halcon Resources’and Ensco Rowan plc’s paper improved with oil futures as Superior Energy Services, Inc.’s notes dropped.

Tire maker Titan International, Inc.’s issues were pushed down.

U.S. Steel rises

Capturing much of the market’s attention, U.S. Steel’s notes were on the rise, traders said.

The 6¼% notes due 2026 picked up 1 point to close at 87½ bid. The 6.65% notes due 2037 improved by ¼ point to close at 85¼ bid.

The 6.25% notes saw $35 million trading by the close.

The Pittsburgh-based steel producer has been feeling the pressure from an uncertain trade climate as the United States continues to renegotiate trade agreements with various counterparts.

“There was a spike in interest in U.S. Steel today,” a trader said. “Apparently, the structure was trading at four times its normal volume.”

Navios gains

In the shipping space, Navios’ issues were also gaining, market sources said.

The 7 3/8% notes due 2022 rose 2¼ points to close at 64¼ bid. The 11¼% notes due 2022 also gained 2¼ points to close at 67¼ bid.

On Thursday, news broke that asset manager Nut Tree Capital Management has purchased a 2.4% stake in the Monaco-based shipping name.

The company has also felt pressure in the current trading climate.

PG&E lower

Meanwhile, in utilities, PG&E’s paper moved lower, traders said.

The 3.95% paper due 2047 dropped ¾ point to close at 85½ bid.

Late Wednesday, the San Francisco-based bankrupt electric utility was marred by negative headlines after California state officials announced that one of the company’s power lines was responsible for a 2018 wildfire that resulted in the death of 85 people.

The company filed for bankruptcy earlier this year after it incurred billions of impairment charges related to wildfires.

Teva mixed, Endo up

Elsewhere, in the health care space, Teva’s notes finished mixed, market sources said.

The 4.1% notes due 2046 shaved off ¼ point to close at 68½ bid. The 3.15% notes due 2026 tacked on 1 point to close at 80¼ bid.

The Petach Tikva, Israel-based generic drugmaker is experiencing a tumultuous week as it faces an antitrust lawsuit from 44 states.

The lawsuit, announced on Monday, alleges that the company and 19 others named in the suit collaborated to stifle competition and inflate drug prices.

Dublin-based sector peer Endo’s issues saw a respite from this week’s negative pressure.

The 6% notes due 2023 picked up 1¾ points to close at 77¾ bid.

Oil futures better

As Thursday begot better oil future prices, popular distressed energy tranches followed accordingly, traders said.

Houston-based independent oil and gas producer Halcon’s paper moved up.

The 6¾% paper due 2025 edged up ¼ point to close at 46 bid.

London-based contract driller Ensco Rowan’s notes were also trending higher.

The 7¾% notes due 2026 gained ¾ point to close at 82¾ bid. The 5.2% notes due 2025 picked up ½ point to close at 76¼ bid.

Houston-based oilfield services provider Superior Energy’s issues went against the positive trend.

The 7 1/8% notes due 2021 shifted lower by 2½ points to close at 78¼ bid.

West Texas Intermediate crude oil futures for June delivery closed Thursday at $62.87 per barrel following an 85-cent boost.

North Sea Brent crude futures for July delivery finished the session 85 cents higher to end at $72.62 per barrel.

Titan down

Titan’s paper saw a push downward during the day, market sources said.

The 6½% paper due 2023 lost ¾ point to close at 87½ bid.

The Quincy, Ill.-based tire maker saw an increase in attention on Thursday, though there was a lack of news tied to it.

Earlier in the month, the company disappointed on earnings by reporting a 2 cents per share profit where analysts expected 15 cents per share.

© 2015 Prospect News.
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