Toys ‘R’ Us down on bankruptcy concern; energy up; Caesars, Peabody firm on financing news

By Paul Deckelman

New York, Sept.6 – Toys ‘R’ Us, Inc.’s bonds were down sharply in active dealings on Wednesday – although almost all of the lower late-session trading came in smallish odd-lot transactions – in response to news reports indicating that the underperforming specialty retailer had hired legal advisers from a firm well known in bankruptcy circles, raising investor concerns that there could be a filing in the company’s future.

Elsewhere among distressed or underachieving credits, energy issues such as oil and gas exploration and production operators California Resources Corp., EP Energy Corp. and Denbury Resources Inc., as well as shale producer MEG Energy Corp. were seen better, in line with firmer oil prices. So were drilling concerns like Transocean Ltd., Noble Corp. and Atwood Oceanics Inc.

A pair of companies saw their bonds firm in response to news that they had lined up bank-loan financing – gaming concern Caesars Entertainment Operating Co., currently in Chapter 11, and coal miner Peabody Energy Corp., which emerged from bankruptcy earlier this year.

PetSmart, Inc.’s bonds improved ahead of the company’s release of quarterly earnings data.

© 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.