Energy slide continues; Moss Creek, SM Energy bonds trade down; Talen notes improve

By Abigail W. Adams

Portland, Me., Aug. 20 – Trading activity was thin in the distressed debt space on Friday with few names active amid late August illiquidity.

“The market’s been pretty dead,” a source said.

However, market players continued to eye distressed energy credits as crude oil futures rounded out a brutal week with more losses.

SM Energy Co.’s 5% senior notes due 2026 and Moss Creek Resources Holdings Inc.’s 7½% senior notes due 2026 (Caa1/B) continued to trade off as WTI and Brent crude oil futures settled the day with losses that exceeded 2%.

SM Energy’s 5% senior notes due 2026 closed Friday down almost 2 points at 96, according to a market source.

Moss Creek’s 7½% senior notes due 2026 closed the day down 1¾ points at 84¼.

Meanwhile, power company Talen Energy Supply LLC’s senior notes improved after plummeting the previous session.

Talen’s 10½% senior notes rose 3 points to close the day at 43½, according to a market source.

The notes plummeted 10 points in heavy volume on Thursday.

Talen’s 6½% senior notes due 2025 gained 3 points to close Friday at 39¾.

The 6% senior notes due 2036 rose 2 points to 32.

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