AMC lower; Talen up; PBF, Moss Creek mixed; Diamond Sports higher; Exela dips; Endo higher

By Cristal Cody

Tupelo, Miss., July 15 – AMC Entertainment Holdings, Inc.’s notes edged down in heavy trading action on Thursday.

AMC’s 12% second-lien senior secured notes due 2026 (Ca/C) softened about ¾ point to head out near the 92¾ bid area on $29 million of secondary volume, a source said.

The notes sank 4 points on more than $36 million of trading supply during Wednesday’s session as its stock fell 15.09% on the day.

Week to date, the notes are down 6 5/8 points.

The bonds started the year in the 23¼ bid range.

AMC’s stock recovered 7.69% on Thursday to close at $36.00.

The Leawood, Kansas-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 improves

Talen Energy Supply LLC’s bonds remained mostly better on the day as the paper edged up following plunges in June and early July.

Talen’s 6½% senior notes due 2025 (B3/CCC+/B) climbed more than 1½ points to head out better than 60¼ bid, a source said.

Trading volume totaled more than $5 million.

The issue sank 3 points on Monday but recovered 3½ points on Tuesday and ¼ point on Wednesday.

The paper fell more than 7 points in the prior week and has declined from the 84½ bid range at the end of May and the 82 bid area at the start of the year.

Talen’s 7 5/8% senior secured notes due 2028 (Ba3/BB-/BB) also added ¼ point to 88½ bid in an active session Thursday, a source said.

In the prior day, the notes were up 1¾ points.

The 2028 notes have declined about 15½ points since the beginning of June and about 5 points since the start of July.

The issue opened the year in the 108 bid area.

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

PBF bonds mixed

PBF Holding Co. LLC’s 6% senior notes due 2028 (B3/B+/B+) improved after weakening in midweek secondary trading, a source reported.

The notes rose 1½ points to 60½ bid on $4 million of trading activity following Wednesday’s slide of 5½ points.

The notes have declined more than 10½ points month to date.

The issue from the Calgary, Alta.-based subsidiary of Parsippany, N.J.-based petroleum refiner PBF Energy Inc. traded at the 56¾ bid area at the start of the year.

PBF’s 7¼% senior notes due 2025 (B3/B+/B+) sank 3 points to 70 bid on $1 million of secondary volume Thursday, the source said.

The notes declined 1½ points on Wednesday on nearly $3 million of trading volume.

The 2025 issue is down over 10 points since the month’s start but remains better than where the notes traded in the 64½ bid range at the beginning of 2021.

Moss Creek mixed

Houston-based oil and gas exploration company Moss Creek Resources Holdings Inc.’s paper was mixed during the session.

Moss Creek’s 10½% notes due 2027 (Caa1/B) were unchanged at 99 bid after declining 1½ points in the previous session, a source said.

The notes remain stronger than the 80½ bid range seen at the start of the year.

Moody’s upgraded the company on June 9 and changed the company’s outlook to stable from negative.

Oil prices continued to sink Thursday.

North Sea Brent crude oil futures for September deliveries tumbled $1.29 to settle at $73.47 after declining $1.73 on Wednesday.

West Texas Intermediate crude oil benchmark futures for August deliveries dropped $1.48 to settle the day at $71.65 following a $2.12 decline on Wednesday.

Futures for September crude oil deliveries settled the day down $1.26 to $71.38 after settling $2.05 lower in the prior session.

Overall market tone was soft Thursday.

The iShares iBoxx High Yield Corporate Bond ETF fell 6 cents to $87.79.

Diamond Sports up

In other distressed secondary trading, Diamond Sports Group LLC’s 5 3/8% senior secured notes due 2026 (B2/CCC+) improved 1¼ points to 60½ bid over the day, a source said.

The notes dropped 1 3/8 points on Wednesday.

The paper is about 3¼ points weaker month to date and down from where the issue traded at 81¼ bid at the start of the year.

Diamond Sports’ notes declined in June after parent company Sinclair Broadcast Group, Inc. disclosed attempts to secure new funding for the Chesapeake, Va.-based sports broadcast group.

Sinclair reported in a June 21 filing with the Securities and Exchange Commission that it made two proposals to lenders and noteholders of Diamond Sports, including a March 22 proposal and an April 29 proposal, but has been unable to reach a definitive agreement.

Exela stronger on week

Exela Technologies, Inc.’s bonds softened Thursday but are higher week- and month-to-date, a source said.

Debt issuer Exela Intermediate LLC’s 10% senior secured first-lien notes due 2023 (Caa3/CCC-) fell 1¼ points to 79 bid in strong secondary supply after softening Wednesday by 3 points.

The notes ended the prior week at 71¾ bid.

Exela’s notes rose about 25 points over the week ended July 2.

The issue was quoted at 31 bid as the year opened.

The Irving, Tex.-based software and services company announced on June 30 that it completed a $100 million at-the-market equity program and that it has entered into an additional $150 million at-the-market equity program.

Endo trades up

In the distressed pharmaceuticals space, Endo Finance LLC’s bonds traded 1 point better across the board, a source said Thursday.

Endo’s 6% senior notes due 2028 (Caa2/CCC+) added 1 point to 61¼ bid on $3 million of secondary activity.

The notes are down 5¾ points since the end of June and softer than where the issue traded at the 84 bid area at the beginning of 2021.

Endo’s 9½% senior secured notes due 2027 (Caa2/CCC+) rose 1 point to 97½ bid on over $5 million of trading supply Thursday.

The issue has softened from 102½ bid at the end of June.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.