April 26, 2016 Comments (0) Blog, Current Investigations

Investor Alert: Alta Mesa Holdings LP

(Last Updated On: March 31, 2017)

Have you suffered losses investing in Alta Mesa Holdings LP 9.625% 10/15/18 bonds? If so, The White Law Group may be able to help.

According to Bloomberg, Alta Mesa Holdings, LP engages in the acquisition, exploitation, exploration, and production of onshore oil and natural gas properties in the United States. The company primarily holds interests in the Sooner Trend fields located in Oklahoma; and Weeks Island field located in Iberia Parish, Louisiana. It also has interests in the Urbana, Cold Springs, and Cold Springs West in East Texas; Blackjack Creek oil field in Florida; and other fields in South Louisiana. The company was founded in 1987 and is headquartered in Houston, Texas.

On April 25th, Moody’s Investors Service  downgraded Alta Mesa Holdings, LP’s  Corporate Family Rating (CFR) to Caa2 from Caa1 and its Probability of Default Rating (PDR) to Caa2-PD from Caa1-PD. At the same time, Moody’s downgraded Alta Mesa’s senior unsecured notes to Caa3 from Caa2. Moody’s affirmed the SGL-4 Speculative Grade Liquidity Rating. The rating outlook remains negative.

High-yield bonds—also called non-investment-grade bonds, speculative-grade bonds, or junk bonds—are bonds that are rated below investment grade, typically ‘BB’ or lower by Standard & Poor’s and ‘Ba’ or lower by Moody’s. They pay high yields to bondholders because the borrowers credit ratings are less than pristine, making it difficult for them to acquire capital at an inexpensive cost. Junk bonds carry an above average risk that the issuer will default on the bond. The increased risk makes them arguably unsuitable for many investors.

Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives.  Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing in Alta Mesa Holdings LP 9.625% 10/15/18 bonds and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.