Peabody Energy notes gain; Macau gaming names rebound; China Evergrande paper drops

By Abigail W. Adams

Portland, Me., Sept. 17 – Activity in distressed debt names remained muted on Friday with emerging market distressed debt remaining in focus.

After a two-day slide, Macau-based gaming companies pared their losses on Friday.

Wynn Macau Ltd.’s and Macau-based Studio City International Holdings Ltd.’s junk bonds regained 1 to 2 points after losing 4 to 8 points over the past two sessions.

The companies have been under pressure since Macau announced its intention to increase supervision of its gaming operators on Tuesday.

China Evergrande Group’s dollar-denominated junk bonds were once again active and sinking further as the market braces for the company to default.

China Evergrande’s 12% senior notes due 2024 (C/CCC-/CCC) fell 2½ points to close the day at 26¾.

The 9½% senior notes due 2024 fell 2½ points to 27.

The 8¾% senior notes due 2025 fell 2 points to 26¾.

The market has long anticipated the China-based real estate developer would default on its debt with the company’s dollar-denominated notes dropping 70 points since May.

In the domestic energy space, Peabody Energy Corp.’s 6 5/8% senior notes due 2025 were on the rise.

The 6 5/8% senior notes gained 1¼ points to close the day at 84¾, according to a market source.

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