DISH bonds mixed after second failed exchange offer; distressed debt supply drops

By Cristal Cody

Tupelo, Miss., Feb. 12 – EchoStar Corp.’s paper went out mixed in fairly ho-hum secondary action after the company terminated an exchange offer for the second time in less than two weeks.

DISH Network Corp.’s convertible bonds under Monday’s terminated exchange offer stayed flat to about ¾ point higher, a source said.

The 3 3/8% convertible notes due 2026 (Caa2/CC) were quoted mostly unchanged at 57¾ bid on just $1 million of volume.

EchoStar’s shares (Nasdaq: SATS) closed down 3.85% to $13 after trading from $12.98 to $13.76 over the day.

DISH DBS Corp.’s bonds that were part of EchoStar’s bond exchange offer terminated on Jan. 29 were mixed in light activity, the source said.

The 5 1/8% senior notes due 2029 (Caa2/CC) were off about ½ point at 41 bid on more than $5 million of trading.

Meanwhile, distressed bond supply actually is on the decline so far in 2024 after heavy volume in 2023, according to a J.P. Morgan Securities LLC note released Monday to Prospect News.

January registered the lowest default/distressed exchange volume at $3 billion since July, down from a monthly average of $7.2 billion in 2023.

JPMorgan forecasts a junk bond default rate in 2024 of 2¾% and a default rate of 3¼% for leveraged loans.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.