Distressed debt finishes firm; Whiting better on exchange news; Intelsat rises on tender

By Stephanie N. Rotondo

Seattle, June 23 – Distressed bonds ended in positive territory on Thursday, in part because of easing “Brexit” fears and in part because of credit-specific news.

The United Kingdom voted Thursday on whether or not to leave the European Union. Though final results were not expected until early Friday, polls done just prior to the start of the vote showed the U.K. would opt to stay.

That optimism pushed up all the markets, including domestic crude oil. The commodity rose over 2% on the day, trading above the $50-mark for the first time in two weeks.

Crude’s gains also meant gains for oil and gas bonds, such as Chesapeake Energy Corp. A trader said the 8% second-lien notes due 2022 ticked up half a point to 87½.

“Everybody is up, up, up,” he said.

Denbury Resources Inc. also got a little pop as oil prices gained ground.

A market source pegged Denbury’s 6 3/8% notes due 2021 at 71½ bid, up a point.

Commodities were generally better across the board given the firm tone of the market. As such, AK Steel Holdings Corp.’s debt was “fairly active,” according to one trader.

He called the bonds “up a touch on the day.”

A second trader said the 7 5/8% notes due 2021 improved half a point to 89½.

Meanwhile, Intelsat SA was also trending upward, as the company said a tender offer at its Intelsat Jackson Holdings SA unit was oversubscribed.

© 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.