Transocean scrapping rigs, bonds weaken; Cliffs gains ahead of new issue; MagnaChip wanes

By Stephanie N. Rotondo

Phoenix, March 20 – A declining dollar helped oil prices improve on Friday, which in turn helped many distressed energy names rebound.

Transocean Ltd., however, was not so lucky, as investors reacted poorly to a rating downgrade on Thursday and word of more scrapped rigs.

A trader deemed the 6 3/8% notes due 2021 half a point weaker at 84 amid “heavy volume.” He also saw the 6.8% notes due 2038 dropping nearly a point to 73.

At another desk, a trader pegged the 6 3/8% notes at 83 bid, 83˝ offered, which he said was “a little lower.”

While Transocean bonds were slipping, many other energy names were on the rise Friday in reaction to a gain in oil prices.

West Texas Intermediate crude for April delivery rose $1.76, or 4%, to $45.72 a barrel. Brent crude gained 53 cents to $54.96.

Also in the commodity space, Cliffs Natural Resources Inc. paper was trending higher. The iron ore producer has been shopping a new deal, which is set to price next week.

Elsewhere, MagnaChip Semiconductor Corp. debt took a downward turn in Friday trading. Earlier in the week, the chipmaker said it was delaying its 10-K filing, as it needed more time to deal with certain earnings that needed to be restated.

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