Navios Maritime trades up on asset sale; energy gains continue; Community Health drops

By Abigail W. Adams

Portland, Me., April 17 – The rally of energy names in the distressed debt space continued on Wednesday with crude oil futures on the rise early in the session despite giving back those gains by the market’s close.

While volume was light, notes from EP Energy, California Resources Corp. and Weatherford International plc were all on the rise during Wednesday’s session.

Navios Maritime Holdings Inc.’s paper was in focus and making gains on Wednesday after the company announced an asset sale.

Meanwhile, Community Health Systems’ paper was losing ground with the health care sector in general under pressure on Wednesday.

Energy gains continue

Energy names in the distressed debt space continued their rally on Wednesday despite a fall back in crude oil futures.

EP Energy’s 8% senior notes due 2024 rose 1½ points on Wednesday to close the day at 62½, according to a market source.

Weatherford International’s 5.95% senior notes due 2042 were also on the rise. The notes gained 1½ points to close the day at 62, a source said.

California Resources’ bellwether 8% senior notes due 2022, known for tracking crude oil prices, traded up 1 point.

They were quoted at 82¼ bid, 83 offered and stood poised to close the day at 83, sources said.

While the barrel price of WTI crude oil for May delivery ended its upswing to settle lower on Wednesday, it continued to post gains early in the session.

Crude oil futures traded as high as $64.61 on Wednesday before settling at $63.76, a decrease of 29 cents or 0.5%.

Crude oil futures settled on Tuesday at $64.05, an increase of 1%.

Navios Maritime in focus

Navios Maritime’s senior notes were posting gains in active trading on Wednesday following a subsidiary’s announced asset sale.

Navios Maritime Holdings’ 7 3/8% senior notes due 2022 rose 2 3/8 points to 55½, according to a market source.

The shipping and logistics company’s 11¼% senior notes due 2022 rose 1½ points to 67¾.

Subsidiary Navios Maritime Acquisition Corp.’s 8 1/8% senior notes due 2021 jumped 2 points on news of the asset sale, a market source said.

Navios Maritime Acquisition announced on Wednesday a sale and leaseback transaction for three MR2 product tankers and two LR1 product tankers for $103.2 million.

Proceeds will be used to refinance $82.4 million in bank debt, according to the company news release.

Community Health down

Community Health’s senior notes were trading down on Wednesday as the health care sector in general took a hit.

The owner and operator of acute care facilities’ 6 7/8% senior notes due 2022 dropped 1 5/8 points to close the day at 67, according to a market source.

The health care sector was down across asset classes on Wednesday with investors evaluating risk as they enter into earnings season, according to a market source.

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