Distressed market quiet overall, but Valeant swings; Peabody continues slide; energy down

By Colin Hanner

Chicago, Dec. 15 – Trading was on the quiet side in the distressed markets on Thursday in contrast to the fluctuation earlier in the week, and much of the focus was on new issue trading in the regular high-yield arena, traders said.

Valeant Pharmaceuticals International Inc. saw intraday swings, tracking low in early morning trading before rebounding to close with mixed movement in several of its notes.

The Canadian-based pharmaceutical company’s chief executive officer said on CNBC that if there is interest for Valeant’s core business, the company would listen.

On the day, a trader said the 6¾% notes due 2018 were down ½ point to 94 7/8, and following with a similar ½ point decrease were the company’s 6 1/8% notes due 2025, which settled with a 74½ handle.

St. Louis-based Peabody Energy Corp. was mostly down, perhaps fueled by the uneasiness in spot coal prices or the momentum of the notes on the week, a trader said.

Oil slipped, albeit slightly, on Thursday, falling early on the rally of the dollar but rebounding to fall just below flat on the day. As a result, several oil and oil-related companies saw mixed movement, including California Resources Corp. and Transocean Inc., which were both down on the day.

Issues still acting on momentum from news in the past few sessions – iHeartMedia, Inc., J. Crew Group, Inc. and Neiman Marcus Group, Inc. – traded but did not see much movement.

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