Distressed energy bonds soften; Transocean, Moss Creek slip; Diamond Sports lower

By Cristal Cody

Tupelo, Miss., Feb. 26 – Energy bonds in distressed secondary trading softened over Friday’s session on mixed oil prices.

“The market was very busy today,” a source said. “A lot of new issues were softer and distressed names were spotty. If they’re energy-related, they’re down.”

Offshore driller Transocean Inc.’s bonds traded about ¼ to ¾ points weaker over the day, a source said.

Transocean’s 11½% notes due 2027 (Caa3) were down ¾ point at 82¼ bid.

The company’s 7½% senior notes due 2026 (C/CCC-/) fell ¼ point to 66 bid.

Oil and gas drilling contractor Nabors Industries Inc.’s bonds traded about ¼ point to 2/3 point softer, according to the market source.

Nabors’ 5¾% senior notes due 2025 (Caa2/CCC-) dipped ¼ point to 79¾ bid.

Oil and gas exploration company Moss Creek Resources Holdings Inc.’s 7½% senior notes due 2026 (Caa2/B-) edged ¼ point lower during the session to 83¼ bid, a source said.

In other distressed secondary trading, Diamond Sports Group LLC’s bonds declined further over Friday’s session, a source said.

The bonds have traded lower over the past two sessions on reports the company is considering a distressed debt exchange or redemption.

Diamond Sports Group’s 5 3/8% senior secured notes due 2026 (Ba3/CCC+) fell 3¼ points to 71 bid on Friday.

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