DISH destruction continues after asset shuffle; EchoStar notes lifted in secondary

By Abigail W. Adams

Portland, Me., Jan. 11 – The distressed debt space was soft on Thursday with the latest Consumer Price Index report coming in stronger than expected.

While a stronger inflationary print than anticipated, the report did little to change the market’s forecasts for rate cuts.

And while distressed debt saw a weak open, it pared its losses alongside the broader market into the close, a source said.

However, topical news remained the driver of activity in the space on Thursday with the destruction in DISH Network Corp.’s senior notes issued by DISH DBS Corp. continuing.

DISH’s senior notes sank another 2 to 6 points as market players assessed the impact of the company’s asset reshuffle following the completion of its merger with EchoStar.

The 7¾% senior notes due 2026 (Caa2/B-) sank another 4½ points to close the day at 58½, a source said.

The 7 3/8% senior notes due 2028 tumbled another 6½ points to close the day at 43½.

While DISH’s senior notes continued to collapse, EchoStar Corp.’s 6 5/8% senior notes due 2026 (B2/CCC+) continued their upward momentum with EchoStar’s portion of the capital structure a benefactor of the asset shuffle.

The 6 5/8% notes rose another ½ point to close the day at 76.

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