Rite Aid notes up, CDS gap out; Lumen, Level 3 paper mixed; Lumen, Embarq CDS widen

By Cristal Cody

Tupelo, Miss., July 20 – Rite Aid Corp.’s 8% senior secured notes due 2026 (Caa3/CCC-/B) saw gains on Thursday and on the week while its credit default swap spreads moved out more than 450 basis points this week.

Rite Aid’s 8% senior secured notes due 2026 (Caa3/CCC-/B) were about 2½ points higher on the week.

The issue traded up 1½ points to 46½ bid on $2 million of volume on Thursday, according to market sources.

Bonds from Lumen Technologies, Inc. subsidiary Level 3 Financing, Inc. were mixed in active trading on Thursday.

“One issue is down; another issue is up,” a trader said.

Lumen’s 4% senior secured notes due 2027 (B3/BB-/BB) were quoted with a 67 bid handle and down more than 1 point since Tuesday.

Subsidiary Level 3’s 4 5/8% senior notes due 2027 (B1/B/B+) went out 1¼ points better on a 77 bid handle in strong trading totaling $18.6 million.

Meanwhile, Lumen’s CDS spreads moved out “a lot” over the week, a source noted.

Lumen’s CDS spreads widened nearly 700 bps this week.

Former Lumen subsidiary Embarq Corp.’s CDS spreads also eased nearly 600 bps this week.

The market seemed “tiresome” in the distressed space on Thursday as the dog days of summer set in, a trader said.

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