Parker Drilling notes down as company exits bankruptcy; Bombardier issues recover after analyst report

By James McCandless

San Antonio, Nov. 19 – At the beginning of the short holiday week, trading in the distressed space centered on energy names.

Parker Drilling Co.’s notes declined as the company announces that it has exited bankruptcy.

Another rise in oil futures saw California Resources Corp.’s issues following suit. Sanchez Energy Corp. and Bristow Group Inc.’s paper saw negative trends.

Away from oil, FerrellGas Partners, LP’s issues saw sharp declines.

Shipping names Navios Maritime Partners LP and Hornbeck Offshore Services Inc.’s notes fell.

Manufacturer Bombardier Inc.’s paper recovered on the back of an analyst’s report that said that regulatory action against the company was routine.

Telecom name Frontier Communications Corp.’s notes were mixed. Intelsat SA’s issues dropped.

Parker Drilling lower

Parker Drilling’s notes declined, traders said.

The 7 ½% notes due 2020 lost 1 ¼ point to close at 67 ¾ bid.

On Monday, the Houston-based contract driller announced that it has exited bankruptcy after completing the restructuring transactions under its plan of reorganization.

The company said it raised $1.5 billion in gross proceeds in new capital, consisting of $1 billion of new secured notes and $500 million of equity, Prospect News reported.

The 7 ½% notes were trading in the 90 context before it declared bankruptcy on Nov. 12, 2017, according to Trace data, before falling further into distressed territory throughout 2018, hitting a low of 67 bid on Nov. 14.

Elsewhere in oil, Los Angeles-based independent oil and gas producer California Resources’ issues followed oil futures up.

The 6% notes due 2024 picked up 1 ½ points to close at 77 ¾ bid. The 8% notes due 2022 rose 1 ¾ points to close at 85 ½ bid.

Despite the rise, other popular oil names declined.

Houston-based peer Sanchez Energy’s 7 ¾% paper due 2021 shed 1 ½ points to close at 41 ¾ bid.

Houston-based offshore aviation services name Bristow Group’s 6 ¼% notes due 2022 fell 1 point to close at 62 bid.

“The space was pretty negative today,” a trader said. “I would be surprised if that didn’t hold for the rest of the week.”

West Texas Intermediate crude futures ended Monday’s mixed session up 68 cents to $56.76 per barrel. North Sea Brent crude oil gained 21 cents to $66.97 per barrel.

FerrellGas drops

Elsewhere, FerrellGas’ issues saw sharp declines, market sources said.

The 6 ¾% notes due 2023 fell 1 ¾ points to close at 81 ¼ bid. The 8 5/8% notes due 2020 shed 2 ¼ points to close at 84 bid.

The Overland Park, Kan.-based natural gas name’s issues have been under pressure since announcing weak fourth-quarter results on Sept. 27.

Navios down

Navios’ paper traded lower, traders said.

The 7 3/8% paper due 2022 lost 3 points to close at 72 bid.

“They were especially negative,” a trader said of the Monaco-based shipping name. “It probably has something to do with the tariff situation.”

Covington, La.-based sector peer Hornbeck’s notes were also declining.

The 5 7/8% notes due 2020 dropped 2 ½ points to close at 69 bid. The 5% notes due 2021 lost 2 points to close at 67 bid.

Bombardier up

Bombardier’s issues began a recovery Monday, market sources said.

The 7½% notes due 2025 rose 1½ points to close at 91¾ bid. The 6 1/8% notes due 2023 added 1½ points to close at 91½ bid.

On Friday, the 7½% notes shed 2 points and the 6 1/8% notes dropped 3½ points.

The Montreal-based manufacturer’s notes dropped Friday amid market scrutiny over a weak cash flow forecast and a regulatory investigation of its executive stock-sale program.

On Monday, A Citigroup analyst said that the regulator’s action is routine and appears to not be looking for improprieties.

The news sent the company’s common stock and notes upward.

Frontier mixed

Frontier’s paper was mixed, traders said.

The 7 5/8% paper due 2024 edged up ¼ point to close at 55¼ bid. The 10½% paper due 2022 rose 1 point to close at 76½ bid. The 11% paper due 2025 fell ½ point to close at 69 bid.

The Norwalk, Conn.-based wireline communications name’s paper has been on a negative trend since June, according to Trace data.

Luxembourg-based satellite operator Intelsat’s notes fell.

Intelsat Jackson SA’s 5½% notes due 2023 lost½ point to close at 87 bid. Intelsat (Luxembourg) SA’s 8 1/8% notes due 2023 dipped 2¼ points to close at 78¾ bid.

© 2015 Prospect News.
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