Halcon plans second debt-for-equity exchange, bonds improve; FMG gives update, debt rises

By Stephanie N. Rotondo

Phoenix, April 16 – A sixth day of consecutive gains in oil prices helped spur the distressed energy space upward in Thursday trading.

Halcon Resources Corp., however, was the only oil and gas name to have specific news out during the session, as the company announced a second debt-for-equity exchange.

The news pushed the company’s bonds up in “very active” trading, a trader said.

Halcon Resources said in a regulatory filing on Thursday that it was exchanging nearly $71 million of its 9¾% notes due 2020 for common stock.

The news comes about a week after the company made a similar arrangement with funds managed by Franklin Investments Inc.

Investors took the latest news well, pushing up the company’s debt by nearly 3 points on the day.

Elsewhere in the commodity realm, FMG Resources sought to assure investors that it could weather the current slump in iron ore prices. The attempt appeared to work, as those bonds were also trending higher on the day – even despite a rating downgrade.

Among other metals miners, a trader saw Thomson Creek Metals Co. Inc.’s 7 3/8% notes due 2018 finishing at 86, up 4 points from a week ago.

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