Lumen sinks following amended restructuring plan; DISH mostly up; Spirit Airlines lower

By Cristal Cody

Tupelo, Miss., Jan. 26 – Distressed bonds from Lumen Technologies, Inc. subsidiary Level 3 Financing, Inc. took a major hit Friday in the aftermath of Thursday’s amended restructuring agreement.

Level 3’s notes slid around 3 points to over 19 points, a source reported.

The 3¾% senior notes due 2029 (B1/B/B+) plummeted 19½ points to 31¼ bid on $7 million of action.

Lumen’s 4½% senior notes due 2029 were down 3 points at 25 bid in light trading after staying steady on Thursday.

DISH DBS Corp.’s bonds moved higher this week as the paper continues to recover following a “kneejerk” reaction regarding parent’s EchoStar Corp.’s announced plans to transfer collateral assets out of the company and to conduct distressed debt exchange offers for four tranches of junk bonds, a source said.

DISH’s 7¾% notes due 2026 (Caa2/CC) were going out more than 3 points better on the week and over 2 points higher from two weeks earlier.

The notes added ½ point Friday to a quote of 59¼ bid on $15 million of volume, a market source said.

DISH’s “secured paper is basically unchanged,” a source said.

Spirit Airlines Inc.’s 8% senior secured notes due 2025 drifted ¼ point lower to 64 bid on some $27 million of paper changing hands as the proposed merger with JetBlue Airways Corp. looks set to dissolve, a source said.

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