AMC drops; Talen better; Nine Energy improves; Mallinckrodt steady; Endo paper flat to higher

By Cristal Cody

Tupelo, Miss., July 14 – Meme stock contender AMC Entertainment Holdings, Inc.’s bonds sank along with its shares on Wednesday.

AMC’s 12% second-lien senior secured notes due 2026 (Ca/C) fell 4 points to 93½ bid on more than $36 million of secondary action during the session, a source said.

The notes have softened from where the issue went out Friday at 99 3/8 bid.

The bonds started the year in the 23¼ bid range.

AMC’s stock fell 15.09% to $33.43 on Wednesday.

The Leawood, Kan.-based movie theater owner has raised about $1.83 billion in total equity so far this year, including approximately $428 million from a registered offering of 43 million shares of class A common stock in May, according to S&P Global Ratings.

Talen bonds gain

Talen Energy Supply LLC’s bonds traded up about ¼ point to 1¾ points on Wednesday as the paper shows recovery following plunges in June and early July.

Talen’s 6½% senior notes due 2025 (B3/CCC+/B) rose ¼ point to 58¾ bid, a source said.

The notes recovered 3½ points on Tuesday after falling 3 points on Monday and more than 7 points in the prior week.

The bonds have declined from the 84½ bid range at the end of May and the 82 bid area at the start of the year.

Talen’s 7¼% senior secured notes due 2027 (Ba3/BB-/BB) rose ¼ point to 88 bid after adding 1¼ points to 87¾ bid in the prior session.

The notes ended Monday down 2 points after declining about 4¼ points over the prior week.

The bonds traded at 106¾ bid as the year opened and fell below par in June.

Also Wednesday, Talen’s 7 5/8% senior secured notes due 2028 (Ba3/BB-/BB) rose 1¾ points to 88¼ bid on more than $8.5 million of secondary supply.

Moody’s Investors Service dropped The Woodlands, Texas and Allentown, Pa.-based power company’s outlook to negative from stable on June 16.

Nine Energy moves up

In other distressed energy issues, Houston-based oilfield services company Nine Energy Service, Inc.’s 8¾% notes due 2023 (Caa2/D) traded in the 55 bid area in thin volume during the session, a source said.

The notes have climbed from 51½ bid at the end of June and the 45¼ bid seen at the year’s start.

Nine Energy plans to release its second-quarter earnings results on Aug. 5.

Both Talen and Nine Energy reported losses or other impacts from the winter storm that hit Texas and the central and southern United States in February.

Oil prices erased gains made in Tuesday’s session.

North Sea Brent crude oil futures for September deliveries fell $1.73 to settle at $74.76 after adding $1.33 on Tuesday.

West Texas Intermediate crude oil benchmark futures for August deliveries settled down $2.12 to $73.13 a barrel following a gain of $1.15 the previous day. September deliveries dropped $2.05 to settle Wednesday at $72.64 a barrel following Tuesday’s bump of $1.25.

Overall market tone was mixed with corporate earnings releases in focus.

The iShares iBoxx High Yield Corporate Bond ETF rose 14 cents to close at $87.85.

Mallinckrodt flat

Elsewhere, bankrupt pharmaceuticals maker Mallinckrodt plc’s notes were quiet in light trading on Wednesday, a source said.

The 4¾% notes due 2023 were mostly unchanged at 23 bid by the close.

The bonds opened the year at the 6 bid area.

In a court filing on Monday, Mallinckrodt’s committee of unsecured creditors objected to a proposed $65.76 million settlement related to allegations of misconduct by senior management members.

On June 16, Mallinckrodt filed a new joint Chapter 11 plan of reorganization and received conditional approval of its disclosure statement in the U.S. Bankruptcy Court for the District of Delaware.

A hearing to confirm the plan is scheduled for Sept. 21-22.

The company, based in Dublin and St. Louis, filed for Chapter 11 bankruptcy on Oct. 12.

Endo notes mixed

Also in the distressed pharmaceuticals space, Endo Finance LLC’s bonds traded flat to better in heavy secondary trading during the session, a source reported.

Endo’s 6% senior notes due 2028 (Caa2/CCC+) were steady on the day at 60¼ bid.

The notes have declined more than 7 points since the start of July and are down from where the issue traded at the 84 bid area at the beginning of 2021.

Endo’s 9½% senior secured notes due 2027 (Caa2/CCC+) improved ½ point to 96¼ bid.

The issue has softened from 102¾ bid at the beginning of the month.

The notes started the year in the 112 bid area.

Parent Dublin-based pharmaceuticals maker Endo International plc will release its second-quarter results on Aug. 5.

The company, facing several lawsuits related to its role in the opioid epidemic, reported soft first-quarter earnings and revenue in May.

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