Wednesday, December 2, 2015

Distressed Debt Update

  • Peabody 4.75s traded at 5.75, current yield of 83%.
  • Energy XXI 3s traded at 12, ytm of 97%
  • Goodrich Petroleum 8.875s traded at 17, ytm of 92%.
  • Linn Energy 7.75s traded at 19.4, ytm of 58%.
  • Arch Coal unsecured debt was "0.75, flat" bid today. That's with coupons due on 12/15.
The equity in all of these companies is most likely worthless. At Arch, Peabody, and Energy XXI, the (subordinated) unsecured debt could also be worthless.

1 comment:

eah said...

Chesapeake's Debt Exchange Offer Is A Brilliant Move For Equity Holders Courtesy Of Carl

Chesapeake (NYSE:CHK) has announced a private exchange for senior notes. The terms and structure of this exchange is brilliant and could potentially provide more much needed time and liquidity for Chesapeake equity holders.