Valeant rebounds after subpoena-related slide, oils firm with crude prices; AMD gains despite losses

By Paul Deckelman

New York, Oct. 16 – A general upturn in the junk bond market on Friday lifted a number of issues that distressed-debt traders had been watching.

One was Valeant Pharmaceuticals International, Inc., whose bonds slid badly on Thursday on the news that the acquisitive specialty drug manufacturer had been sent subpoenas by federal prosecutors in two districts seeking information on its controversial drug-pricing policies and its patient-assistance program that helps patients pay for the expensive medication.

Friday was also a better day for oil and natural gas companies such as California Resources Corp., Berry Petroleum Co. and Chesapeake Energy Corp.

The sector was seen having gotten a boost from the first upturn in crude oil prices this week.

Advanced Micro Devices Inc. bondholders apparently shrugged off any worries about the computer-chip manufacturer’s third-quarter slide into the red versus its year-ago profit, focusing instead on news of a Chinese joint venture that will add a sizable chunk of welcome cash to AMD’s coffers.

Traders in the convertibles market meantime saw pressure on some issues on Friday, including clean-energy company SolarCity Corp. and railroad equipment manufacturer Greenbrier Cos. Inc. Ahead of Monday’s scheduled earnings release, Helix Energy Solutions Group Inc.’s converts were also seen off.

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