Peabody strong on heavy trading; Basic nearly unchanged despite Chapter 11; Linn gains

By Colin Hanner

Chicago, Oct. 24 – A flurry of heavy volume of trading with Peabody Energy Corp. and news of Chapter 11 in two other energy companies had trading mixed during Monday’s session.

Peabody continued its lively streak at the beginning of the new week and was “very active” again on Monday, according to one trader.

He said the 6½% notes due 2022 traded up 3 points to 75¾, and that the 6½% notes due 2020 were up 2 points to 51 on “heavy volume.”

Another market source had the 6½% notes due 2020 up 2½ points to 52.

The coal company’s 6% due 2018 were up 2¼ points to 51¾, and the 6¼% notes due 2021 were up 2 5/8 points to 51 7/8.

Speculation about the supply of oil coupled with news of restructuring had Basic Energy Services, Inc. trading during the day without much change.

The company announced that it has agreed to file for Chapter 11 following news that it has entered restructuring support agreements with some holders of its 7¾% notes due 2019 and its 7¾% notes due 2022.

The company intends to exit Chapter 11 before the end of the year.

A trader said the 7¾% notes due 2019 were up “near 54.”

Linn Energy, LLC’s 7¾% notes due 2021 were up 2 points to 30½, a market source said, and MEG Energy Corp.’s 7% notes due 2024 were up ½ point to 89¾.

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