GrafTech downtrend continues; Spirit Airlines, DISH bonds rally in secondary trading

By Abigail W. Adams

Portland, Me., March 6 – It was a relatively quiet and flat day in the distressed debt space on Wednesday with broader markets largely unchanged following Federal Reserve chair Jerome Powell’s congressional testimony.

There were few surprises from Powell’s comments with the narrative unchanged – rate cuts are coming but will not begin until the Fed has more confidence in its victory over inflation.

The comments did little to move the needle in markets, a source said.

With the broader market unchanged, price movements in the space were largely credit specific.

GrafTech Global Enterprises Inc.’s senior notes (B2/BB-) continued their downtrend in active trade on Wednesday despite the continued bull run in the graphite electrode manufacturer’s stock.

The 9 7/8% senior notes due 2028 were off about 1 point to return to a 75-handle.

Spirit Airlines Inc.’s 8% senior secured notes due 2025 (Caa2) made large gains in active trade as creditors explore options to boost their recovery in a bankruptcy event.

The 8% notes added 1¼ points to return to a 74-handle and closed the day wrapped around 74¼.

DISH DBS Corp.’s senior notes were also on the rise as parent company EchoStar Corp. continues to pursue financing options to keep the company afloat.

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