CF goes low after quarterly results and credit news; Peabody’s asset sale causes uptick

By Colin Hanner

Chicago, Nov. 3 – Oil continued to slump to further lows – bringing distressed energy bonds down with it – and weak quarterly results from CF Industries Inc. and others defined activity in distressed-land on Thursday.

Traders turned to nitrogen and fertilizer manufacturer and distributor CF Industries after it announced its third-quarter results late Wednesday, a loss for the first time in more than six years from falling prices in the fertilizer sector.

“Due to the uncertain duration of the current low price environment, the company has made and is making certain changes to parts of its debt capital structure to put in place financing more consistent with the current business and operating environment,” the company said in a release.

Several traders saw decline in its notes, and one trader said it was especially so because the company’s revolving credit facility was cut to $750 million from $1.5 billion.

The most actively traded of its notes were the 3.45% notes due 2023, which traded 100 times Thursday, according to one trader, and were down 4½ points to 89.

Coal company Peabody Energy Corp. announced that one of its Australian subsidiaries has entered a definitive agreement to sell its Metropolitan Mine in New South Wales, Australia to South32 Ltd. for $200 million in cash.

The 6½% notes due 2020 were up 1½ points to 46¾, a market source said, while a trader had the same notes ¼ point higher at 47.

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