Party City up; Rite Aid improves; Qurate Retail widens; Embarq notes, CDS spreads mixed

By Cristal Cody

Tupelo, Miss., Jan. 19 – Party City Holdings Inc.’s 8¾% senior secured notes due 2026 (Caa3/D/C) added 2 points in mostly light secondary action on Thursday as the market absorbs the company’s Chapter 11 bankruptcy filing earlier in the week.

Party City’s 8¾% senior secured notes due 2026 (Caa3/D/C) rose 2 points to head out at 21¼ bid, a source reported.

Trading was light on $2.7 million of volume.

Distressed bonds from Rite Aid Corp., Embarq Corp. and Qurate Retail Inc. are moving in the secondary market this week, along with the companies’ credit default swap spreads.

Rite Aid’s CDS spreads were sitting at just under 5,000 basis points in the prior week before improving this week by more than 200 bps.

The drug retailer’s 8% senior secured notes due 2026 (B3/CCC-/CCC) also were about 2 points better this week at the 51½ bid range, a source said.

CDS spreads from Qurate Retail widened 85 bps over the past week and 800 bps from just over a month ago.

Qurate Retail’s 8½% senior debentures due 2029 (B3/CCC) traded about 2½ points lower on Thursday with a 50 handle, a source said.

Embarq’s 7.995% notes due 2036 (Caa2/CCC/CCC) were quoted trading with a 52 handle, while its CDS spreads hit 1,000 bps this week.

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