AMC rises on theater reopenings; Hertz, Intelsat stronger; PBF, Transocean notes gain

By Cristal Cody

Tupelo, Miss., Feb. 22 – Distressed movie theater owner AMC Entertainment Holdings, Inc.’s bonds rallied after New York governor Andrew Cuomo announced that New York City movie theaters will be reopened on March 5 at 25% capacity, along with other Covid-19 safety precautions in place.

AMC’s 12% second-lien senior secured notes due 2026 (Ca/C) jumped more than 4½ points to 73½ bid on $23.5 million of trading volume, a source said.

The notes were quoted going out Friday 1¾ points better.

Also, AMC’s 5¾% notes due 2025 (Ca/C) traded 5½ points higher on the day at 53½ bid, the source said.

On Monday, Adam Aron, chief executive officer and president of AMC Entertainment, was “excited to announce that AMC, the largest movie theatre exhibitor in New York City, will reopen all 13 of our theatres in New York City beginning March 5.”

The reopening “is another important step towards restoring the health of the movie theatre industry and of our company,” Aron said in the news statement.

AMC announced in January that it raised additional funding, including $304.8 million through the sale of common shares.

Hertz climbs higher

Elsewhere in distressed trading, bankrupt car rental company Hertz Corp.’s paper traded better in heavy secondary supply on Monday, a source said.

The 5½% notes due 2024 were quoted trading late in the day at 75 bid, up 3¼ points from where the issue traded on Friday.

Hertz filed for Chapter 11 bankruptcy in May.

Last week, the company received bankruptcy court approval for a key employee incentive plan.

Intelsat Jackson improves

Intelsat Jackson Holdings SA’s bonds recovered some losses in the secondary market on Monday, a source said.

Intelsat Jackson’s 5½% senior notes due 2023 climbed to 62½ bid over the day, a source said.

The notes went out Friday at 60 1/8 bid, down about 10 points from the prior week.

The company’s 9¾% senior notes due 2025 were up 4 points at 64 bid in late afternoon trading on Monday.

The 9¾% notes softened more than 12 points over the prior week.

Bankrupt parent company Intelsat SA announced earlier in February that it reached a restructuring plan that will reduce the company’s debt to $7 billion from nearly $15 billion.

The company filed for Chapter 11 bankruptcy in May 2020 in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division.

Oil bonds gain

Market tone remained mixed on Monday with major stock indices mostly lower.

The iShares iBoxx High Yield Corporate Bond ETF closed down 27 cents, or 0.31%, to $87.23.

Oil prices recovered strongly on Monday with North Sea Brent crude oil futures soaring past $65.

North Sea Brent crude oil futures for April deliveries settled up $2.33 at $65.24 a barrel.

West Texas intermediate crude oil for March deliveries jumped $2.25 over the session to settle at $61.49 a barrel.

Petroleum refiner PBF Holding Co. LLC’s 6% senior notes due 2028 (B3/B+/B+) were 2¼ points stronger on the day at 60½ bid, a source said.

Offshore driller Transocean Inc.’s 7½% senior notes due 2026 (C/CCC-/) also rose 1 point to 64 bid.

Meanwhile, American Airlines Group Inc.’s 3¾% senior notes due 2025 (Caa1/CCC/CCC) were trading at 81 3/8 bid on Monday, up more than 2½ points, a source said.

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