DISH, Hughes decline; bonds sell off as Fed cut hopes erased; Spirit Airlines steady

By Cristal Cody

Tupelo, Miss., Feb. 13 – DISH DBS Corp.’s paper stayed mostly mum on Tuesday after parent EchoStar Corp. terminated a second exchange offer on Monday, while subsidiary Hughes Satellite Systems Corp.’s 6 5/8% senior notes due 2026 (Caa3/CCC+) turned volatile in heavy supply.

The bonds were down over 1¼ points going into the close and went out around ½ point lower at 65½ bid, 66½ offered on just under $15 million of volume, sources said.

In DISH’s bonds, “nothing too exciting” was seen over the day with the paper unchanged to down about ½ point in the name, a trader said.

DISH’s 7¾% senior notes due 2026 (Caa2/CC) softened about ¾ point on Tuesday to 60½ bid, 61½ offered.

Overall secondary market action was “really quiet” as the New York area came under heavy snow.

Stocks slid in a wide sell-off that spread to corporate bonds after the Labor Department reported an increase in the January Consumer Price Index.

“Bit of a surprise in the CPI,” a source noted. “No rate cut.”

In other distressed trading on Tuesday, Spirit Airlines Inc.’s 8% senior secured notes due 2025 (Caa2//BB-) softened about 1/8 point to 71½ bid, 72½ offered but remained “up a bit” from Thursday and largely unchanged from Friday, a trader said.

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