AMC bonds continue upswing; CBL modestly softer; Hertz mixed; Nabors, PBF trade higher

By Cristal Cody

Tupelo, Miss., April 6 – AMC Entertainment Holdings, Inc.’s bonds gained another 1½ to 3½ points in distressed secondary trading on Tuesday.

AMC’s 12% second-lien senior secured notes due 2026 (Ca/C), which added 4¾ points on Monday, traded 1¼ points higher at 88½ bid and yielding more than 14% on Tuesday, a source said.

The 12% notes have soared from trading at the start of the year at 27 bid.

AMC’s 5¾% senior subordinated notes due 2025 (Ca/C) rose 1½ points to 75¼ bid after climbing 5¼ points in the prior session.

The issue has improved from trading in late January at 33½ bid, while still yielding more than 13%.

AMC, a Leawood, Kansas-based movie theater owner, reported in March that 98% of its U.S. locations are now open as the country moves forward in Covid-19 vaccinations.

CBL notes active

Bonds from bankrupt real estate investment trust CBL & Associates Properties, Inc. were heavily traded on Monday and Tuesday but modestly softer over Tuesday’s session, a source said.

CBL’s 5.95% senior notes due 2026 dipped to 57 5/8 bid from 57¾ bid in the prior session on heavy trading volume.

The notes traded at 57¼ bid in the same session last week and began the year in the 40 bid range.

CBL’s bonds have improved since the Chattanooga, Tenn.-based owner and developer of malls and shopping centers reported on March 22 that it expects to eliminate $1.6 billion of debt under a new restructuring plan.

CBL and 176 affiliated companies filed for Chapter 11 bankruptcy on Nov. 1 and Nov. 2 in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.

CBL received an extension through May 31 to file the new restructuring plan and an extension through July 29 to solicit votes.

Hertz 5½% notes up

Hertz Global Holdings, Inc.’s bonds were mixed in light secondary trading on Tuesday as the company eyes a June exit from Chapter 11 bankruptcy, a source said.

The company’s 5½% notes due 2024 were up ½ point at 99½ bid in thin volume after heavy secondary supply on Monday.

The issue has climbed from trading at 53½ bid at the start of the year.

Hertz announced Saturday that it selected an enhanced proposal with greater creditor support from Centerbridge Partners, LP, Warburg Pincus LLC, and Dundon Capital Partners, LLC to provide the equity capital to fund its exit from Chapter 11 bankruptcy.

The Estero, Fla.-based car rental operator filed an amended Chapter 11 plan of reorganization and related disclosure statement on Saturday in the U.S. Bankruptcy Court for the District of Delaware.

On March 2, Hertz had filed a joint Chapter 11 bankruptcy plan of reorganization with a $4.2 billion buyout offer from Knighthead Capital Management, LLC and Certares Opportunities LLC.

Under both proposals, Hertz said it would eliminate approximately $5 billion of debt, have over $2 billion of global liquidity and completely eliminate all corporate debt on its European business.

A hearing on the offer is scheduled for April 16.

Hertz filed for Chapter 11 bankruptcy on May 22, 2020.

Oil, gas bonds gain

Overall market tone was mixed with major stock indices lower as Credit Suisse Group AG reported Tuesday that it will take a charge of CHF4.4 billion due to the “failure by a U.S.-based hedge fund to meet its margin commitments.”

The company said its investment bank chief executive officer and chief risk and compliance officer would step down from the board and leave the bank.

In addition, Credit Suisse announced that it has proposed reducing shareholder dividends.

Nomura Holdings, Inc. announced March 29 that it had canceled $3.25 billion of senior notes priced in three tranches on March 23 due to an event that occurred after pricing that could impact the company’s consolidated financial results.

Credit Suisse had reported that a significant U.S.-based hedge fund defaulted on margin calls made by it and certain other banks.

Archegos Capital Management reportedly liquidated more than $20 billion of shares.

In the high-yield space, the iShares iBoxx High Yield Corporate Bond ETF rose 15 cents to $87.26.

Oil prices improved after settling down more than $2.50 on Monday.

West Texas Intermediate crude oil futures for May deliveries rose 68 cents to settle the day at $59.33 a barrel, while June deliveries added 69 cents to settle at $59.37 a barrel.

North Sea Brent crude oil futures for June deliveries added 59 cents to settle at $62.74 a barrel.

In the secondary market, oil and gas drilling contractor Nabors Industries Inc.’s 5¾% senior notes due 2025 (Caa2/CCC-) rose more than 1½ points to 76½ bid on $12.5 million of trading volume, a source said.

Petroleum refiner PBF Holding Co. LLC’s 6% senior notes due 2028 (B3/B+/B+) were quoted better over the past two sessions.

The notes were up nearly 2¾ points near the 78 bid range after adding 1¼ points on Monday, a source said.

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