12 Months Of High-Yield Bond Reviews From Durig Capital - Our 3rd Quarter Recap

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Includes: ACW, AOI, BRS, BTG, BVWN, CLMT, CRC, CWXZF, DGPIF, DLNG, ESV, FGP, HLF, IBIBF, ICON, KEM, LGCY, MEMP, NOG, NRP, NXEO, OAS, PGH, PHII, TGA, TPRFF, UNT, VNR
by: Randy Durig

Summary

35 US dollar debt recommendations, with average YTW indications* of 18.89%!

7 foreign currency (Canadian dollar) debt additions, with average YTW indications* of 21.53%!

The current average price gain in principle if investing in all bonds equally is over 13%; please see the table at the end of the review.

A Year-In-Review: October 1, 2015 to September 30, 2016

Click to enlarge

Here is the overall summary of the 42 bond reviews and recommendations (from 35 different issuers) that were sent to clients over the past 12 months, between October 1, 2015, and September 30, 2016. Also given are the prices and yields that Durig Capital clients subsequently acquired the issue for, as well as their currently indicated value (or value when closed) relative to par. Bond reviews are published on Seeking Alpha and on Bond-Yields.com. The summary table at the end of this review does not reflect any future fluctuations in bond valuations, nor does it include the gains or losses that have or might ultimately result from exchange rate currency changes from purchase to redemption. However, it does offer a reasonably quick snapshot of how our recommendations have been faring since adjusting our selection criteria midway through last year to bond market conditions and its ensuing volatility.

Twelve of these recommendations (from 10 different foreign corporations) were global corporate debt instruments issued in US dollars (aka, Yankee Bonds), and seven recommendations (from six different issuers) were debt instruments denominated in Canadian dollars. Each summary that follows lists the issuer, coupon rate, maturity, credit rating, the yields at the time of recommendation, the acquisition price, the current value indication (as a percentage of par), as well as a brief update of most issues.

  • 35 US dollar debt recommendations, with average YTW indications* of 18.89%, were made for FX1.

  • 42 mixed currency (US and Canadian dollar) debt recommendations, with average YTW indications* of 19.33%, were made for FX2.

  • 7 foreign currency (Canadian dollar) debt additions, with average YTW indications* of 21.53%, were made for FX3.

At the time of recommendation, these debt instruments had an average outstanding maturity of about 35 months (2.88 years) at an overall indicated average price discount of about 80.06%, and an average coupon rate of over 7.26%. The average time remaining until maturity for these bonds is currently about 27 months (or 2.22 years.)

  • The current average price gain in principle if investing in all bonds equally is over 13%; please see the table at the end of the review.

Not included or calculated is the additional accrued interest that is earned with the issuer's coupon rate. As of today, there were no recommendations in this time period that were not acquired, but two had limited availability.

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*Yield indications at the time of recommendations for addition to individual portfolios and currently indicated values are not presented as overall or year to date performance averages. As a result of our institutional association, we may obtain better or differing yield/price executions for our clients than is initially indicated in our reports.

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17.5% Northern Oil and Gas

Issuer: Northern Oil and Gas (NYSEMKT:NOG)
Ticker: NOG
Coupon: 8.00%
Maturity: 06/01/2020
Ratings: Caa3 / CC
Pays: Semiannually
Price: 75
Yield to Maturity: ~17.58%
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Date of Review: 9/28/16
Current Price: 72.75

More on Northern Oil and Gas.

8.5% Ferrellgas Partners

Issuer: Ferellgas Partners (NYSE:FGP)
Coupon: 8.625%
Maturity: 6/15/2020
Rating: B2/B+
Pays: Semi-annually
Price: 100.25
Yield to Worst Call: ~8.0% (@100 on 6/15/2018)
Yield to Maturity: ~8.3%
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Date of Review: 9/20/16
Current Price: 97.0

In late September, Ferrellgas reported on its 2016 fiscal year results. The company announced adjusted EBITDA of $344.7 million for fiscal 2016, an increase of 14.8% from $300.2 million in the previous year. In addition, Ferrellgas announced that James E. Ferrell, the Company's founder and Chairman of the Board of Directors, has been appointed as Interim President and Chief Executive Officer, effective immediately. Mr. Ferrell grew the company from a small single-location business in 1965 to what is today, the second largest propane retailer in the nation. More on Ferrellgas Partners.

11.35% Unit Corporation

Issuer: Unit Corporation (NYSE:UNT)
Coupon: 6.625%
Maturity: 05/15/2021
Ratings: B3/B+
Pays: Semi-annually
Price: 83.25
Yield to Maturity: ~11.37%
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Date of Review: 9/15/16
Current Price: 91.0

Between September 19 and October 10, 2016, Unit Corporation's stock has appreciated by 20.7%, from $15.31 per share to $18.48 per share. More on Unit Corporation.

16% Baker Corporation

Issuer: BakerCorp International
Coupon: 8.250%
Maturity: 06/01/2019
Ratings: Caa3 / CCC
Pays: Semi-annually
Price: 83.125
Yield to Maturity: ~16.19%
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Date of Review: 9/8/16
Current Price: 80.0

Baker Corporation's European segment continues to grow. For its quarter ended 7/31/16, the company's European segment registered a revenue increase of 24% over the same period in 2015. More on Baker Corporation.

18.81% Natural Resource Partners

Issuer: Natural Resource Partners LP (NYSE:NRP)
Coupon: 9.125%
Maturity: 10/01/2018
Ratings: Caa2 / B
Pays: Semiannually
Price: 84.0
Yield to Maturity: ~18.81%
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Date of Review: 8/30/16
Currently Priced at: 96.5

More on Natural Resource Partners.

11.5% Accuride Corporation

Issuer: Accuride Corporation, Inc. (NYSE:ACW)
Coupon: 9.50%
Maturity: 8/01/2018
Rating: B3/B-
Pays: Semi-annually
Price: 96.5
Yield to Maturity: ~11.58%
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Date of Review: 8/19/16
Partial (Voluntary) Redemption on 11/18/16 at 100.62
Current Price: 100.12

In early September, Accuride announced that it has entered into a definitive agreement to be acquired by funds managed by Crestview Partners, a leading New York based private equity firm, for $2.58 per share in cash. The transaction is expected to close in the fourth quarter of 2016. After the transaction closes, Accuride will remain an independent global company with continuity of leadership, business units and worldwide operations. It will continue to operate under its current brand name and remain headquartered in Evansville, Ind., USA, with operations in the United States, Canada, Mexico and Italy. More on Accuride Corporation.

12.5% Alliance One International

Issuer: Alliance One International Inc. (NYSE:AOI)
Coupon: 9.875%
Maturity: 7/15/2021
Ratings: Caa3 / CCC
Pays: Semi-annually
Price: 90.55
Yield to Maturity: ~12.5%
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Date of Review: 8/12/16
Current Price: 83.0

For the quarter ended June 30, 2016, Alliance one increased gross profit for the quarter by 15.8% versus last year to $34.1 million and gross profit as a percentage of sales also improved to 13.0% from 11.0%. These improvements came as a result of increased volume, product mix, currency movements as well as the impact of efficiency improvements and cost cutting initiatives. Also, Alliance One just announced the completion of its offering of $275 million of its 8.50% Senior Secured First Lien Notes due 2021. Concurrently, the company also announced that it entered into an ABL credit agreement to establish a $60.0 million borrowing base. More on Alliance One.

14% Broadview Networks

Issuer: Broadview Networks Holdings Inc. (OTC:BVWN)
Coupon: 10.50%
Maturity: 11/15/2017
Ratings: -/-
Pays: Semi-annually
Price: 96.2
Yield to Maturity: ~14.04%
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Date of Review: 7/27/16
Current Price: 95.0

For the quarter ended June 30, 2016 (Q2), Broadview Networks posted adjusted EBITDA of $12.6 million, a 29% increase over Q2 2015 at $9.7 million. Over that same time period (Q2 2015 to Q2 2016), unlevered free cash flow doubled, from $3.4 million to $6.8 million. More on Broadview Networks.

8% Commercial Vehicle Group

Issuer: Commercial Vehicle Group, Inc.
Coupon: 7.875%
Maturity: 4/15/2019
Ratings: B2/B
Pays: Semi-annually
Price: 99.5
Yield to Maturity: ~8.08%
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Date of Review: 7/22/16
Current Price: 99.25

For Q2, CVG did a great job maintaining its gross profit margin year-over-year on 18% percent less sales, Also for Q2, selling general and administrative expense for the quarter decreased 11% or $2 million from a year ago. The company increased its cash position for the first six months of the year by $32 million. More on Commercial Vehicle Group.

47.75% Eagle Rock Energy Partners

Issuer: Eagle Rock Energy Partners / Vanguard Natural Resources, LLC (NYSE:VNR)
Coupon: 8.375%
Ratings: -/CC
Maturity: 06/01/2019
Pays: Semi-annually
Price: 41.65
Yield to Maturity: ~47.75%
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Date of Review: 7/14/16
Current Price: 43.0

On August 1, 2016, Vanguard engaged Evercore Partners to assist the Board of Directors and management team with respect to identifying and negotiating with new potential capital sources. Vanguard has chosen to use its 30-day grace period, postponing a $15 million interest payment on its senior notes for 30 days to preserve liquidity until banks have finished recalculating how much it can borrow on its credit facility. Notably, these bonds are trading at YTD high (around 58), which is unusual for bonds to appreciate after news of a missed interest payment. Also, on October 7, 2016, Vanguard filed an 8-K with the SEC, disclosing it is in ongoing discussions with potential financing sources regarding a potential refinancing or recapitalization of the Vanguard's existing capital structure. More on Vanguard Natural Resources.

16% Alta Mesa Holdings

Issuer: Alta Mesa Holdings
Coupon: 9.625%
Maturity: 10/15/2018
Ratings: Caa3
Pays: Semi-annually
Price: 87.825
Yield to Maturity: ~16.329%
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Date of Review: 7/11/16
Current Price: 98.0

For the quarter ended June 30, 2016, Alta Mesa had production volumes of 1.8 MMBOE, or an average of approximately 20,200 BOE per day, compared to 1.7 MMBOE or approximately 19,000 BOE per day in the second quarter of 2015. While increasing production, the company also decreased costs. On a per unit of production basis, production cost in the second quarter 2016 was $10.23 per BOE compared to $11.41 per BOE in the second quarter of 2015. More on Alta Mesa Holdings.

19.5% Temple Hotels

Ticker: TPH.TO (TPHMF)
Toronto: $1.19 (6/29/2016)

Debenture: TPH.DB.D
Coupon: 7.75%
Maturity: 6/30/2017
Conversion Price: $ 7.04
Rating: none
Pays: Semi-annually
Price: 90.25
Yield to Maturity: ~19.58%
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Date of Review: 6/29/16
Current Price: 94.0

During the second quarter of 2016, Temple's properties located in Fort McMurray were evacuated and were placed under mandatory evacuation due to the wildfires that impacted the region. Temple's Fort McMurray portfolio consists of 891 rooms in nine properties. In spite of these circumstances, Temple kept its operating profit margins consistent with Q2 2015, at 31%, in spite of the decreased revenues due to the wildfires. More on Temple Hotels.

31.09% Legacy Reserves

Issuer: Legacy Reserves (NASDAQ:LGCY)
Bond Coupon: 8.0%
Maturity: 12/01/2020
Rating: Ca/CCC+
Pays: Semi-annually
Price: 46.25
Yield to Maturity: ~31.09%
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Date of Review: 6/07/16
Currently Priced at: 58.0

More on Legacy Reserves.

12.05% Bristow Group's Yankee Bond

Issuer: Bristow Group (NYSE:BRS)
Bond Coupon: 6.25%
Maturity: 10/15/2022
Rating: B1/B+
Pays: Semi-annually
Price: 74.75
Yield to Maturity: ~12.05%
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Date of Review: 6/02/16
Currently Priced at: 77.0

In early October, Bristow Group announced the appointment of William "Bill" Collins to senior vice president global operations, responsible for overseeing safe and reliable helicopter and airplane operations across Bristow's business. More on Bristow Group.

22.4% California Resources Corporation

Issuer: California Resources Corporation (NYSEMKT:CRC)
Bond Coupon: 5.0%
Maturity: 01/15/2020
Rating: Caa3/CCC+
Pays: Semi-annually
Price: 58.4
Yield to Maturity: ~22.4%
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Date of Review: 5/23/16
Currently Priced at: 70.0

For the quarter ended June 30, 2016, CRC focused on reducing costs as well as reducing debt. The company posted a 22% reduction in quarterly production costs year-over-year as well as a 28% reduction in quarterly general and administrative costs year-over-year. In addition, in Q2 CRC had an $80 million debt reduction in exchange for common stock during the quarter. In August, CRC also concluded a successful cash tender offer for a portion of its outstanding bonds, resulting in a debt reduction of $1.3 billion from its post spin-off peak.

More on California Resources Corporation.

13.98% Kemet Corporation's Yankee Bond

Issuer: KEMET Corporation (NYSE:KEM)
Coupon: 10.5%
Ratings: Caa1/B-
Maturity: 5/01/2018
Pays: Semi-annually
Price: 94.25
Yield to Maturity: ~13.98%
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Date of Review: 5/17/16
Currently Priced at: 100.0

For the quarter ended June 30, 2016, Kemet Corporation had adjusted EBITDA of $24.27 million as compared to adjusted EBITDA of $20.16 million for the same period in 2015, representing an increase of over 20%. The company also improved its gross margin for the quarter ended 6/30/16 by 20 basis points to 23%, compared to 22.8% in the prior quarter.

More on Kemet Corporation.

30% Memorial Production Partners

Issuer: Memorial Production Partners LP (NASDAQ:MEMP)
Bond Coupon: 7.625%
Maturity: 5/01/2021
Rating: Caa3 / CCC
Pays: Semi-annually
Price: 45.0
Yield to Maturity: ~29.37%
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Date of Review: 5/10/16
All positions were closed out by 11/3/16 at about 38.5

More on Memorial Production Partners.

25.75% Gran Colombia Gold's Yankee Bond

Issuer: Gran Colombia Gold, Inc. (OTCPK:TPRFF)
Ticker: GCM.TO (TSX)
Stock Price: $0.095 CAD (04/28/2016)
Conversion Option Price: $0.13 USD (currently ~$0.169 CAD)
Coupon: 1% Cash / 2% PIK rate
Maturity: 08/11/2018
Ratings: NA
Pays: Monthly
Price: 58.29
Yield to Maturity: ~25.75%
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Date of Review: 4/28/16
Currently Priced at: 68.0

For the first six months of 2016, Gran Columbia generated adjusted EBITDA for the first six months of 2016 of $29.9 million, double the adjusted EBITDA of the first half of 2015. In addition, the company recorded Q2 revenue of $48.0 million, up 54% year-over-year. More on Gran Colombia Gold.

12.15% IBI Group (in Canadian dollars)

Issuer: IBI Group Inc. (OTCPK:IBIBF)
Ticker: IBG (TSX Exchange) / Stock Price: $3.90 (NYSEARCA:CAD)
Bond Coupon: 6.00%
Conversion Option Price: $21.00 CAD
Ratings: NA
Maturity: 6/30/2018
Pays: Semi-annually
Price: 88.55
Yield to Maturity: ~12.17%
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Date of Review: 4/21/16
Currently Priced at: 100.5

For the six months ending 6/30/2016, IBI Group had a 13% increase in total revenues as compared to 2015, as well as an impressive 29% increase in adjusted EBITDA as compared to 2015. More on IBI Group.

16.52% Iconix Brand Group

Issuer: Iconix Brand Group, Inc. (NASDAQ:ICON)
Stock Price: 8.46
Conversion Price: 30.86/share
Coupon: 1.5%
Ratings: NA
Maturity: 03/15/2018
Pays: Semi-Annually
Price: 76.35
Yield to Maturity: ~16.52%
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Date of Review: 4/15/16
Currently Priced at: 90.0

For Q2 2016 Iconix recorded licensing revenue of $95.7 million (EPS of $0.23) The company also repurchased $105M of its 2018 convertible notes in Q2, improving the company's balance sheet. More on Iconix Brand Group.

30% Natural Resource Partners

Issuer: Natural Resource Partners LP
Coupon: 9.125%
Maturity: 10/01/2018
Ratings: Caa2 / B
Pays: Semiannually
Price: 66.25
Yield to Maturity: ~29.42%
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Date of Review: 4/08/16
Currently Priced at: 96.5

NRP's Q2 results are encouraging. The company registered net income from continuing operations for the three months ended June 30, 2016 of $47.7 million, or $3.90 per unit, an increase of $13.3 million, from $34.4 million, or $2.82 per unit, a year earlier. In addition, NRP also reduced debt by $88.5 million (including discontinued operations) in the first six months of 2016, including $37.3 million in the second quarter of 2016. More on Natural Resource Partners.

16.78% Data Group (in Canadian dollars)

Issuer: Data Group Inc. (OTCPK:DGPIF)
TSX Stock Price: 0.025 (CAD) 3/30/16
Bond Coupon: 6.00%
Conversion Option Price: (too high to be a significant benefit or factor to bondholders)
Ratings: NA
Maturity: 6/30/2017
Pays: Semi-annually
Price: 88.6
Yield to Maturity: ~16.78%
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Date of Review: 3/30/16

Currently Priced at: 92.0

More on Data Group.

14.32% Dynagas LNG Partners Yankee Bond

Issuer: Dynagas LNG Partners LP (NYSE:DLNG)
Coupon: 6.25%
Maturity: 10/30/2019
Ratings: -/-
Pays: Quarterly
Price: 77.875
Yield to Maturity: ~14.32%
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Date of Review: 3/23/16
Currently Priced at: 94.88

In its Q1 2016 results, Dynagas registered a 25.3% increase in Adjusted EBITDA as compared to the same period in 2015. In addition, the company secured new long-term charters for three of the Partnership's modern ice-class LNG carriers. More on Dynagas LNG Partners.

17.7% Pengrowth Energy (in Canadian dollars)

Issuer: Pengrowth Energy (NYSE:PGH)

TSX Stock Price: 1.27 (CAD)
Conversion Price: 11.51 / share (CAD)
Coupon: 6.25%
Ratings: NA
Maturity: 03/31/2017
Pays: Semi-Annually
Price: 90.065
Yield to Maturity: ~17.7%
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Date of Review: 3/15/16
Currently Priced at: 101.55

Year to date (as of June 30, 2016), Pengrowth had successfully reduced its outstanding debt by approximately $225 million and year over year outstanding debt had been reduced by approximately $371 million. The Company had $54.1 million of cash on hand at the end of the quarter, which is expected to increase to approximately $150 to $200 million by the end of the year. More on Pengrowth Energy.

17.39% Transglobe Energy (in Canadian dollars)

Issuer: Transglobe Energy Corporation (NASDAQ:TGA)
TSX Stock Price: 2.27 (in CAD)
Bond Coupon: 6.00%
Conversion Option Price: $15.10 CADRatings: NA
Maturity: 3/31/2017
Pays: Semi-annually
Price: 89.55
Yield to Maturity: ~17.39%
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Date of Review: 3/08/16
Currently Priced at: 100.04

The Company achieved funds flow of $2.0 million during the second quarter, and ended the quarter with positive working capital of $65.4 million (net of convertible debentures, which are now current liabilities), which includes cash and cash equivalents of $124.3 million. More on Transglobe Energy.

30.99% Gran Colombia Gold's Yankee Bond

Issuer: Gran Colombia Gold, Inc.
Ticker: GCM.TO (TSX)
Stock Price: $0.095 CAD (04/28/2016)
Conversion Option Price: $0.13 USD (currently ~$0.169 CAD)
Coupon: 1% Cash / 2% PIK rate
Maturity: 08/11/2018
Ratings: NA
Pays: Monthly
Price: 49.05
Yield to Maturity: ~30.99%
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Date of Review: 2/24/16
Currently Priced at: 68.0

For the first six months of 2016, Gran Columbia generated adjusted EBITDA for the first six months of 2016 of $29.9 million, double the adjusted EBITDA of the first half of 2015. In addition, the company recorded Q2 revenue of $48.0 million, up 54% year-over-year. More on Gran Colombia Gold.

34.36% Camposol's Yankee Bond

Issuer: Camposol S.A.
Coupon: 9.875%
Ratings: Caa1/B-
Maturity: 02/02/2017
Pays: Semi-Annual
Price: 81.25
Yield to Maturity: ~34.36%
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Date of Review: 2/16/16
Currently Priced at: 98.5

For the first half of 2016 (up to June 30, 2016), Camposol recorded EBITDA of USD 13.9 million, 60.3% higher than the same period in 2015. Also, in Q2, Camposol successfully paid off a majority of these notes (73.75%) through an exchange to 2021 notes. More on Camposol.

41.4% Natural Resource Partners

Issuer: Natural Resource Partners LP
Coupon: 9.125%
Maturity: 10/01/2018
Ratings: Caa2 / B
Pays: Semiannually
Price: 51.0
Yield to Maturity: ~41.4%
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Date of Review: 2/09/16
Currently Priced at: 96.5

More on Natural Resource Partners.

8.15% Herbalife

Issuer: Herbalife (NYSE:HLF)
Stock Price: 47.33
Conversion Price Option: 86.28
Coupon: 2.00%
Maturity: 8/15/2019
Ratings: - /-
Pays: Semi-Annual
Price: 81.5
Yield to Maturity: ~8.19%
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Date of Review: 2/02/16
All client positions were sold at 101.5 on 7/18/2016

12.1% PHI Inc.

Issuer: PHI, Inc. (NASDAQ:PHII)
Coupon: 5.25%
Maturity: 3/15/2019
Rating: B2/BB-
Pays: Semi-annually
Price: 82.75
Yield to Maturity: ~12.1%
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Date of Review: 1/26/16
Currently Priced at: 94.0

Demand for PHI's Air Medical services continues to grow. In Q2 2016, Air Medical segment flight hours increased 535 hours from the quarter ended June 30, 2015, due to increased flight hours in the traditional provider and independent provider operations. Individual patient transports in the Air Medical segment were 4,823 for the quarter ended June 30, 2016, compared to transports of 4,757 for the quarter ended June 30, 2015. More on PHI Inc.

33.87% Catalyst Paper's Yankee Bond

Issuer: Catalyst Paper (CYSTF)
Coupon: 11.00%
Ratings: - /-
Maturity: 10/30/2017
Pays: Semi-Annual
Price: 72.75
Yield to Maturity: ~34.87%
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Date of Review: 1/19/16
Last Priced at: 63.5

Catalyst is in the process of restructuring a debt for equity swap. More on Catalyst Paper.

10.1% B2Gold's Yankee Bond

Issuer: B2Gold (NYSEMKT:BTG)
Stock Price: $1.02
Coupon: 3.25%
Maturity: 10/01/2018
Conversion Price: $3.93 / share
Ratings: NA
Pays: Semiannually
Price: 84.00
Yield to Maturity: ~10.1%
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Date of Review: 12/31/15
Currently Priced at: 102.62

For Q2 2016, B2Gold had Record quarterly consolidated gold production of 135,242 ounces, 4% (or 5,697 ounces) above budget and 11% (or 13,676 ounces) greater than the same period in 2015. The company also recorded consolidated gold revenue a quarterly record of $164.8 million on sales of 130,829 ounces at an average price of $1,260 per ounce, an increase in revenue of 21% over the same period in 2015. More on B2Gold.

40.41% Camposol's Yankee Bond

Issuer: Camposol S.A.
Coupon: 9.875%
Ratings: Caa1/B-
Maturity: 02/02/2017
Pays: Semi-Annual
Price: 74.875
Yield to Maturity: ~40.41%
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Date of Review: 12/8/15
Currently Priced at: 98.5

For the first half of 2016 (up to June 30, 2016), Camposol recorded EBITDA of USD 13.9 million, 60.3% higher than the same period in 2015. Also, in Q2, Camposol successfully paid off a majority of these notes (73.75%) through an exchange to 2021 notes. More on Camposol.

58.3% Data Group (in Canadian dollars)

Issuer: Data Group Inc.
TSX Stock Price: 0.025 (CAD) 3/30/16
Bond Coupon: 6.00%
Conversion Option Price: (too high to be a significant benefit or
factor to bondholders)
Ratings: NA
Maturity: 6/30/2017
Pays: Semi-annually
Price: 51.5
Yield to Maturity: ~58.3%
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Date of Review: 12/01/15
Currently Priced at: 92.0

7.37% Ensco

Issuer: Pride International / Ensco PLC (NYSE:ESV)
Coupon: 8.5%
Maturity: 06/15/2019
Rating: Baa2 / BBB+
Pays: Semi-annually
Price: 103.45
Yield to Maturity: ~7.372%
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Date of Review: 11/24/15
Currently Priced at: 107.62

Ensco took proactive steps to improve its capital structure and liquidity in Q2. The company repurchased $861 million of senior notes at a 28% discount through a tender and another $79 million of senior notes at a 21% discount on the open market. The company also raised $586 million of net proceeds through a 65.6 million share offering. As a result, it increased liquidity to more than $4 billion at quarter end, composed of $1.8 billion of cash and short-term investments and a fully available $2.25 billion revolving credit facility. More on Ensco.

8.85% Oasis Petroleum

Issuer: Oasis Petroleum Corp. (NYSE:OAS)
Coupon: 7.25%
Maturity: 02/01/2019
Rating: B2/B+
Pays: Semi-annually
Price: 95.65
Yield to Maturity: ~8.85%
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Date of Review: 11/16/15
Voluntary Redemption at 101.625 on 9/27/2016

14.09% Kemet Corporation's Yankee Bond

Issuer: KEMET Corporation
Coupon: 10.5%
Ratings: Caa1/B-
Maturity: 5/01/2018
Pays: Semi-annually
Price: 92.75
Yield to Maturity: ~14.09%
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Date of Review: 11/09/15
Currently Priced at: 100.0

More on Kemet Corporation.

10.17% Nexeo Solutions

Issuer: NEXEO Solutions (NASDAQ:NXEO)
Coupon: 8.375%
Ratings: Caa2/CCC+
Maturity: 3/01/2018
Pays: Semi-annually
Price: 96.4
Yield to Maturity: ~10.17%
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Date of Review: 11/02/15
Full call at par on 6/19/16

8.06% Calumet Specialty Products

Issuer:Calumet Specialty Products Partners (NASDAQ:CLMT)
Coupon: 7.625%
Maturity: 01/15/2022
Rating: B2/B+
Pays: Semi-annually
Price: 97.9
Yield to Maturity: ~8.059%
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Date of Review: 10/28/15
Currently Priced at: 81.0

As of June 30, 2016, Calumet had nearly $470 million in cash and availability on its revolving credit facility, even after $30 million of related party note repayments and $42 million in cash interest payments on its outstanding unsecured notes during the second quarter 2016. More on Calumet Specialty Products.

10.27% Dynagas LNG Partners Yankee Bond

Issuer: Dynagas LNG Partners LP
Coupon: 6.25%
Maturity: 10/30/2019
Ratings: -/-
Pays: Quarterly
Price: 87.0
Yield to Maturity: ~10.27%
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Date of Review: 10/19/15
Currently Priced at: 94.88

More on Dynagas LNG Partners.

13.56% Transener's Yankee Bonds

Issuer: Compania de Transporte Energia (Transener)
Coupon: 9.75%
Maturity: 8/2/2021
Ratings: CCC-
Pays: Semi-annually
Price: 85.0
Yield to Maturity: ~13.56%
---------------------------------------
Date of Review: 10/09/15
Currently Priced at: 103.25

Consolidated net non-regulated revenues for the six-month period ended on June 30, 2016 were 110.6% higher than for the same period of 2015. More on Transener.

8.8% CanWel Building Materials (in Canadian dollars)

Issuer: CanWel Building Materials Group Ltd. (OTC:CWXZF)
TSX Stock Price: 5.38 (10/8/15)
Debenture Coupon: 5.85%
Ratings: NA
Maturity: 4/30/2017
Conversion price: 12.8 (bondholder's option anytime prior to maturity)
Pays: Semi-annually
Price: 95.8
Yield to Maturity: ~8.8%
---------------------------------------
Date of Review: 10/06/15
Full call at Par on 10/24/2016

In August 2016, CanWel entered into an agreement with a syndicate of underwriters led by GMP Securities, where the underwriters agreed to purchase on a bought deal basis, 9,091,000 shares of CanWel for gross proceeds to CanWel of approximately $60.0 million. The company then used these proceeds for the early redemption of these 5.85% April 2017 bonds. The redemption was completed on September 30, 2016. More on CanWel Building Materials.

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*Summary Table:

Review Date

Issuer

Coupon

Maturity Date

Acquisition Price

Yield to Worst

Current or Closed Price

% Change

FX1

FX2

FX3

28-Sep-16

Northern Oil & Gas

8.000

6/1/2020

75.000

17.50

17.50

72.75

(3.00%)

20-Sep-16

Ferrellgas

8.625

6/15/2020

100.250

8.45

8.45

97.00

(3.24%)

15-Sep-16

Unit Corp

6.625

5/15/2021

83.250

11.37

11.37

91.00

9.31%

8-Sep-16

Baker Corp

8.250

6/1/2019

83.125

16.19

16.19

80.00

(3.76%)

30-Aug-16

Natural Resource Partners

9.125

10/1/2018

84.000

18.81

18.81

96.50

14.88%

19-Aug-16

Accuride Corp

9.500

8/1/2018

96.500

11.58

11.58

100.62

4.27%

12-Aug-16

Alliance One International

9.875

7/15/2021

90.550

12.50

12.50

83.00

(8.34%)

27-Jul-16

Broadview Network Hold

10.500

11/15/2017

96.200

14.04

14.04

95.00

(1.25%)

22-Jul-16

Commercial Vehicle Group

7.875

4/15/2019

99.500

8.08

8.08

99.25

(0.25%)

14-Jul-16

Eagle Rock Energy

8.375

6/1/2019

41.650

47.75

47.75

43.00

3.24%

11-Jul-16

Alta Mesa Holdings

9.625

10/15/2018

87.825

16.33

16.33

98.00

11.59%

29-Jun-16

Temple Hotels

7.750

6/30/2017

90.250

19.58

19.58

94.00

4.16%

7-Jun-16

Legacy Reserves

8.000

12/1/2020

46.250

31.09

31.09

58.00

25.41%

2-Jun-16

Bristow Group

6.250

10/15/2022

74.750

12.05

12.05

77.00

3.01%

23-May-16

California Resource Corp

5.000

1/15/2020

58.400

22.40

22.40

70.00

19.86%

17-May-16

Kemet Corp.

10.500

5/1/2018

94.250

13.98

13.98

100.00

6.10%

10-May-16

Memorial Prod. Partners

7.625

5/1/2021

45.000

29.37

29.37

38.50

(14.44%)

28-Apr-16

GranColombia Gold

1.000

8/11/2018

58.290

25.75

25.75

68.00

16.66%

21-Apr-16

IBI Group

6.000

6/30/2018

88.550

12.15

12.15

100.50

13.50%

15-Apr-16

Iconix Brand Group

1.500

6/15/2018

76.350

16.52

16.52

90.00

17.88%

8-Apr-16

Natural Resource Partners

9.125

10/1/2018

66.250

29.42

29.42

96.50

45.66%

30-Mar-16

Data Group

6.000

6/30/2017

88.600

16.78

16.78

92.00

3.84%

23-Mar-16

Dynagas

6.250

10/30/2019

77.875

14.32

14.32

94.88

21.84%

15-Mar-16

Pengrowth Energy

6.250

3/31/2017

90.065

17.70

17.70

101.55

12.75%

8-Mar-16

Transglobe Energy

6.000

3/31/2017

89.550

17.39

17.39

100.04

11.71%

24-Feb-16

GranColombia Gold

1.000

8/11/2018

49.050

30.99

30.99

68.00

38.63%

16-Feb-16

Camposol

9.875

2/2/2017

81.250

34.36

34.36

98.50

21.23%

9-Feb-16

Natural Resource Partners

9.125

10/1/2018

51.000

41.40

41.40

96.50

89.22%

2-Feb-16

Herbalife

2.000

8/15/2019

81.500

8.15

8.15

101.50

24.54%

26-Jan-16

PHI Inc.

5.250

3/15/2019

82.750

12.10

12.10

94.00

13.60%

19-Jan-16

Catalyst Paper

11.000

10/30/2017

70.500

33.87

33.87

63.50

(9.93%)

31-Dec-15

B2Gold

3.250

10/1/2018

84.000

10.10

10.10

102.62

22.17%

8-Dec-15

Camposol

9.875

2/2/2017

74.875

40.41

40.41

98.50

31.55%

1-Dec-15

Data Group

6.000

6/30/2017

51.500

58.30

58.30

92.00

78.64%

24-Nov-15

Ensco PLC / Pride Intl

8.500

6/15/2019

103.450

7.37

7.37

107.62

4.03%

16-Nov-15

Oasis Petroleum 2019

7.250

2/1/2019

95.650

8.85

8.85

101.63

6.25%

9-Nov-15

Kemet Corp.

10.500

5/1/2018

92.750

14.09

14.09

95.00

2.43%

2-Nov-15

NEXEO Solutions

8.375

6/1/2018

96.400

10.17

10.17

100.00

3.73%

28-Oct-15

Calumet Specialty Prod.

7.625

1/15/2022

97.900

8.06

8.06

81.00

(17.26%)

19-Oct-15

Dynagas

6.250

10/30/2019

87.000

10.27

10.27

94.88

9.06%

9-Oct-15

Transener 2021

9.750

8/15/2021

85.000

13.56

13.56

103.25

21.47%

6-Oct-15

CanWel Building Mat.

5.850

4/30/2017

95.800

8.80

8.80

100.00

4.38%

Averages

7.264

80.063

18.89

19.33

21.53

88.94

13.217%

Click to enlarge

We hope you enjoy our high yield income approach!

Disclosure: Durig Capital, our highly successful Distressed Debt 1 LP Hedge Fund, and certain clients may own positions in the bonds listed above.

____________________________________________________________

*Yield indications at the time of recommendations for addition to individual portfolios are not presented as year to date performance averages. Also, please note that all yield and price indications are shown from the time of our research or publication, and we believe it to be accurate and transparent. Any errors and omissions that may have occurred in this report are unintentional, and we believe the pricing data and platforms used to prepare this report to be reliable and accurate, but cannot guarantee it. Our reports are never an offer to buy or sell any security. We are not a broker/dealer, and reports are intended for distribution to our clients. As a result of our institutional association, we may obtain better yield/price executions for our clients than is initially indicated in our reports. We welcome inquiries from other advisors that may also be interested in our work and the possibilities of achieving higher yields for retail clients.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.