Brent crude’s ‘head fake’ puts oil and gas arena in the spotlight; iHeart mixed

By Stephanie N. Rotondo

Seattle, July 20 – The distressed debt market was again focused on the oil and gas arena on Thursday following a “head fake” with Brent crude prices early in the day, according to a trader.

For the first time in six weeks, Brent prices topped the $50 mark.

“People thought it would be going higher,” the trader said, which resulted in a flurry of activity in distressed oil and gas names.

Crude prices – both Brent and West Texas Intermediate – came back in by the end of the day, finishing with a weaker tone.

Analysts polled by Thomson Reuters had forecast a draw of 3.2 million barrels.

As for the day’s dealings, Noble Energy Inc.’s 7¾% notes due 2024 hit a high of 82, before settling back down at 81, a trader said.

He said the bonds closed unchanged.

MEG Energy Corp.’s 6 3/8% notes due 2023, however, managed to tick up a quarter-point to 80¾, the trader said.

Not all oil and gas names were riding Brent’s early rally.

EP Energy Inc.’s 7 3/8% notes due 2020 were steady at 86, a trader said, and its 8% notes due 2025 were slightly weaker at 79½.

Away from oil and gas, iHeartCommunications Inc.’s bonds were mixed after the company yet again extended its private exchange offer for five series of priority guarantee notes and senior notes and certain term loan facilities in connection with a proposed debt restructuring.

© 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.