Rite Aid notes slip as bankruptcy chatter renews; secondary active; CommScope improves

By Cristal Cody

Tupelo, Miss., Oct. 13 – Rite Aid Corp.’s bonds slipped on Friday in heavy secondary action as the market gauges the distressed retailer’s latest announcement and possible bankruptcy plans.

Rite Aid’s 8% senior secured notes due 2026 (Caa3/C/B) slid over ½ point to about 1 point in one of the most active distressed names moving in the secondary market, a source said.

The notes were quoted at 64¾ bid on $8.5 million of trading but were also seen down about 1 point around 64 bid on $2 million of volume on Friday.

“The Street has been active in them,” a source said. “Rite Aid is said to be seeking an asset-backed loan – they need liquidity to continue as a going concern if they’re going into bankruptcy and not liquidation. Bed, Bath & Beyond, that was just a liquidation.”

Market action in the junk and distressed spaces remained on Friday as tone soured.

“It was busy,” a trader said. “The market was weaker today.”

CommScope Holding Co., Inc.’s notes also were busy in the secondary space and among the distressed gainers on Friday, a source reported.

CommScope, Inc.’s 5% senior notes due 2027 (Caa1/CCC+) traded 2 points better in the afternoon at 54½ bid.

Volume in the issue was strong on $5.3 million of supply.

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