AMC second-lien notes higher; Endo bonds unchanged to softer; Skillz secured paper up

By Cristal Cody

Tupelo, Miss., March 2 – Bonds from AMC Entertainment Holdings, Inc. and Endo International plc topped secondary activity in the distressed market on Wednesday.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) traded over 1¼ points better following the company’s strong fourth-quarter earnings report in the prior session.

Endo’s paper went out flat to ½ point softer after declining Tuesday on the heels of the company’s fourth-quarter earnings release at the start of the week.

Overall measured market volatility was lower with stock indices higher on the day.

The iShares iBoxx High Yield Corporate Bond ETF closed up 20 cents at $83.33.

Oil soared past $110.00 a barrel on Wednesday after breaking over $100 in the prior session in the volatility surrounding Russia’s continued invasion of Ukraine.

West Texas Intermediate crude oil benchmark futures for April deliveries, which rallied $4.13 on Monday and $7.69 on Tuesday, settled Wednesday $7.19 higher at $110.60 a barrel.

In other secondary action, Skillz Inc.’s 10¼% senior secured notes due 2026 (B3/B-) that priced in December as the company’s debut high-yield issue added 2 points to trade with a mid-80s handle.

AMC bonds gain

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) improved 1¼ points to 93½ bid with the issue the heaviest-traded distressed bond seen in the market on Wednesday, a source said.

Secondary supply totaled $24 million.

The Leawood, Kan.-based movie theater owner said Tuesday that fourth-quarter revenue climbed to $1.17 billion from $162.5 million in the 2020 fourth quarter. AMC reported a net loss of $134.4 million in the quarter, improved from a $946.1 million loss in the year-ago period.

Endo notes mixed

Endo Finance LLC’s 6% senior notes due 2028 (Caa3/CCC-) traded about ½ point weaker on Wednesday at 63½ bid from where the issue last moved in the prior session, a source said.

The issue finished the previous day down 2½ points after declining over 4 points by late afternoon.

The company’s 9½% senior secured notes due 2027 (Caa2/CCC+) went out flat at 96 bid on $21 million of notes traded over the day.

The secured notes were down 1½ points on Tuesday.

Endo International on Monday reported a fourth-quarter loss and higher revenue.

The Dublin-based pharmaceuticals maker continues to face opioid-related claims. In February, Endo reported it expected a Tennessee state court to issue a default judgment against its subsidiaries regarding opioid-related claims in 13 counties with a damages trial anticipated in April 2023.

Endo reported in January it reached a $65 million opioid-related settlement with Florida.

In 2021, the company announced opioid-related settlements that included a $35 million settlement in Tennessee, a $7.5 million settlement with the Louisiana Attorney General's office and a $50 million agreement to settle three opioid-related cases in New York.

Skillz higher

Also on Wednesday, Skillz’s 10¼% senior secured notes due 2026 (B3/B-) traded 2 points better at 86 bid on $2 million of secondary activity, a source said.

The bonds were yielding over 14¼%.

Skillz sold $300 million of the notes on Dec. 15 at 95 to yield 11.598%.

The issue printed with the coupon on top of talk and the price at the low end of talk at 97.

The mobile games platform operator is based in San Francisco.

Distressed index softens

The S&P U.S. High Yield Corporate Distressed Bond index one-day total return softened on Tuesday to minus 1.04% from 0.07% on Monday.

Month-to-date total returns improved to minus 0.97% from minus 1.85% at the start of the week.

Year-to-date index returns widened to minus 4.36% in the prior session from minus 3.35% on Monday.

© 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.