Bloomberg News

ATP $1.5 Billion of Debt Falls to Yield 23.4%, Trace Data Show

September 29, 2011

Sept. 29 (Bloomberg) -- ATP Oil & Gas Corp.’s $1.5 billion of 11.875 percent notes maturing in May 2015 dropped 5.75 cents to 73 cents on the dollar today, according to Trace, the bond- price reporting system of the Financial Industry Regulatory Authority.

The Houston-based petroleum and natural gas producer’s debt is yielding 23.4 percent, the highest since at least January, Trace data show. The debt has dropped from 102.5 cents at the end of July, when it yielded 11 percent.

ATP shows a “high likelihood” it may face some type of restructuring, analysts from Moody’s Investors Service wrote in a Sept. 26 report. The company’s asset base and cash flows are “not sufficient to cover” the second-lien notes, according to the report. Moody’s assigns a Caa2 grade to ATP with a “negative” outlook.

To contact the reporter on this story: Sapna Maheshwari in New York at sapnam@bloomberg.net

To contact the editor responsible for this story: Pierre Paulden at ppaulden@bloomberg.net


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