Michaels, Ahern mixed off fresh downgrades; Bed Bath active; CHS up; Transocean drops

By Cristal Cody

Tupelo, Miss., July 12 – Bonds in the retail and health care spaces remained under pressure on Tuesday.

Michaels Cos., Inc.’s 7 7/8% senior notes due 2029 (Caa1/CCC+) fell ¼ point to 68 bid following a negative outlook from S&P Global Ratings on Tuesday and a downgrade from Moody’s Investors Service the prior day, a source said.

Bed Bath & Beyond Inc.’s notes were mixed in strong secondary activity with the short-dated notes about 1 point higher and the long bonds about 1¼ points lower.

Bed Bath & Beyond’s 3.749% senior notes due 2024 (B3/B+) improved about 1 point to 40¼ bid, a source said.

Ahern Rentals, Inc.’s 7 3/8% second-priority senior secured notes due 2023 (Caa3/C) climbed 1¼ points to 77¼ bid off a fresh downgrade and ahead of the company’s early tender offer expiration.

Looking at the health care space, CHS/Community Health Systems, Inc.’s 6 1/8% senior secured notes due 2030 (Caa2/CCC) rose ¼ point to 57¼ bid in light trading, a source said.

Distressed energy paper softened with oil prices down more than $8 a barrel.

Transocean Inc.’s 8% debentures due 2027 (C/CCC-) gave back 4 points to head out at 58 bid, a source said.

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