Quarter-end trading focus on new issues, not distressed bonds; Algeco higher post-numbers

By Stephanie N. Rotondo

Seattle, March 31 – As the first quarter came to an end, the distressed debt market was taking a backseat to the high-yield market’s $5.23 billion of new notes issued by Western Digital Corp. on Wednesday.

“The day was dominated with new issues like Western Digital,” a trader said.

“There was decent volume, I guess,” another trader commented. He also specifically pointed to Western Digital, noting that trading in the two-tranched issue made up about $400 million of total volume for the day.

But new issues aside, some distressed debt activity managed to eke out.

Algeco/Scotsman Holding Sarl was inching up, just one day after the company reported earnings. The report showed lower revenue and a narrower loss.

But on the heels of the quarterly results, the company announced that its chief executive officer was resigning and that it had hired advisers to look into ways to improve liquidity and “to conduct a review of its current financing.”

Meanwhile, traders saw strength in AK Steel Holdings Corp.’s debt, though there was no fresh news to act as a catalyst.

One trader said the 7 5/8% notes due 2020 were “up a little bit more” at 62. Another market source pegged that issue at 62¾ bid, which was a gain of over a point.

Elsewhere in the commodity space, a trader said he saw oil and gas producer Chaparral Energy Inc.’s 7 5/8% notes due 2022 move up slightly to 19 1/8.

© 2015 Prospect News.
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