Medco USD Notes Rebound; Lucror Sees Positives in Ophir Deal

(Bloomberg) -- Medco Energi’s dollar bonds recouped some of this week’s losses as Lucror Analytics says a successful bid for Ophir Energy will boost scale and diversification.

The co.’s Jan. 2025 notes jumped 1.3 cents on the dollar to 92.5 cents as of 1:15pm Hong Kong time, according to Bloomberg-compiled prices. They fell ~1.9 cents in the past two days after offering to take over Ophir.

Medco’s 2022 and 2025 notes are trading at fair value at current yield of 7.5% to 8.5%, Law says separately by phone; he would consider upgrading his recommendation if spreads widen by 50-100bps from here.

NOTE: Medco Reaches Takeover Deal for Ophir With 55-Pence-a-Share Bid

2019-01-31 06:31:20.904 GMT

By David Yong