Energy bonds mixed in distressed trading; Transocean, Peabody active; Chesapeake emerges

By Cristal Cody

Tupelo, Miss., Feb. 9 – Chesapeake Energy Corp.’s bonds saw light trading on Tuesday ahead of the company’s announcement after the markets closed that it completed its restructuring process and emerged from Chapter 11 bankruptcy.

The energy company’s 8% senior notes due 2027 traded at 6 bid in thin volume, a market source said.

Chesapeake Energy was in the primary market on Feb. 5 with a $1 billion two-part sale of senior notes.

The company said under the restructuring plan, about $7.8 billion of debt has been equitized and the company’s preferred and common equity interests have been canceled. The company’s new shares will begin trading on the Nasdaq on Wednesday under the ticker “CHK.”

Meanwhile, offshore driller Transocean Inc.’s 7½% notes due 2026 gained ½ point to 57 in trading Tuesday, a market source said.

The company’s 8% senior notes due 2027 (Ca/CCC) improved ¼ point to 56¾ bid over the day.

Coal producer Peabody Energy Corp.’s 6 3/8% senior secured notes due 2025 (Caa1/CCC-) traded up ¼ point to 55½ bid on Tuesday after last being seen in the secondary market on Friday, a source said.

The issue has softened from 59 bid at the start of February.

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