Nabors flat; Shelf Drilling, Transocean, Diamond Offshore drop; CBL notes improve

By Cristal Cody

Tupelo, Miss., March 22 – Oil and gas bonds traded mostly flat to softer in the distressed secondary space on Monday as oil prices edged higher.

Oil and gas drilling contractor Nabors Industries Inc.’s 5¾% senior notes due 2025 (Caa2/CCC-) traded heavily during the session following strong secondary volume on Friday, a source said.

The notes were unchanged by late afternoon at 78 bid after softening over the prior week.

Shelf Drilling Holdings Ltd.’s 8¼% senior notes due 2025 (Caa3/CCC+) fell 1¼ points to 73 bid in light trading, a market source said.

Offshore driller Transocean Inc.’s 11½% senior guaranteed notes due 2027 (Caa3/CCC) also declined 1½ points to 87¼ bid in thin secondary supply.

Elsewhere in the distressed energy space, Diamond Offshore Drilling Inc.’s bonds were weaker in light trading following the company’s report that it posted a $67.16 million net loss for February, a market source said.

Meanwhile, bankrupt real estate investment trust CBL & Associates Properties Inc.’s notes were better on Monday.

The company’s 5¼% notes due 2023 traded higher at 52½ bid, and the 5.95% senior notes due 2026 jumped to 53¼ bid during the session, a market source said.

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