Rite Aid, Staples paper, CDS spreads better; Revlon notes lower; EnLink preferreds up

By Cristal Cody

Tupelo, Miss., Aug. 4 – Two distressed retailers’ paper and credit default swaps spreads saw improvement Thursday and over the week.

Rite Aid Corp.’s 8% senior secured notes due 2026 (B3/CCC-/BB-) traded 1¼ points better on the day at 86¼ bid, while its CDS spreads also tightened more than 250 basis points this week, sources said.

Staples, Inc.’s senior notes mostly improved on Thursday, while its CDS spreads came in nearly 100 bps over the past week ended Wednesday.

The company’s 10¾% senior notes due 2027 (Caa2/CCC+) rose about 1 point in early trading before going out mostly flat near the 75¾ range.

Also in the distressed market, Revlon Inc.’s paper has been soft in light trading since the bankrupt company received approval at the start of the week for a $1.43 billion debtor-in-possession financing package.

Revlon’s 6¼% senior notes due 2024 fell more than 1 point by the close to the 8¾ bid area, a source said.

Meanwhile, EnLink Midstream Partners LP’s 6% perpetual preferred stock (Ba3/B+/BB-) rallied 2½ points, a day after the company reported strong second-quarter earnings and raised its full-year 2022 guidance.

The issue went out at 72¼ bid on $5 million of paper traded, a source said.

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