AMC extends rally; Bausch, Coinbase up; Diebold steadies; Greenland Global plunges

By Cristal Cody

Tupelo, Miss., May 27 – AMC Entertainment Holdings, Inc.’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) extended a rally into Friday’s session.

The issue was quoted trading 2¾ points better after adding 3¾ points in the prior day.

Bausch Health Cos. Inc.’s senior notes also climbed about 2¾ points to 3 points on Friday.

Market tone held strong heading into the Memorial Day weekend on growing investor confidence, a source said.

The iShares iBoxx High Yield Corporate Bond ETF, which climbed $1.17 on Wednesday and $1.09 on Thursday, improved another 66 cents on Friday to $80.14.

The distressed space, though, is expanding on the higher volatility and rates, according to market sources.

“We’ve seen some names fall,” a source said. “It’s widened out now because of the rates movement and general market tone. We went from the tights last year to wides and could go even wider.”

Rate-dependent deals from issuers including Coinbase Global, Inc. haven’t fared well in the secondary space, a source noted.

The cryptocurrency exchange platform priced $1 billion of its 3 3/8% notes due 2028 at par back in September, and the senior guaranteed notes (Ba1/BB+) traded Friday at 73 bid, up 1½ points on the day.

Meanwhile, Diebold Nixdorf Inc.’s bonds “were drilled down” after weak earnings and lower 2022 guidance earlier in May, a market source said.

The 8½% notes due 2024 (Caa1/CCC-) were mostly flat on Friday but have shed about 40 points over the month.

Also Friday, Greenland Global Investment Ltd.’s 5.6% senior notes due Nov. 13, 2022 (B3) sank 17½ points after the company announced it is seeking to extend the maturity on $488 million of dollar bonds due in June.

China’s property developer space slid into the distressed space last year following defaults from issuers that included China Evergrande Group, Kaisa Group Holdings Ltd. and Fantasia Holdings Group Co. Ltd.

China Evergrande Group’s offshore bonds were not active in the secondary market on Friday, a source said.

The Shenzhen, China-based real estate developer’s dollar notes were last seen trading in April and early May in the 9½ to 11¾ bid range.

AMC bonds gain

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) rose 2¾ points in the short session on Friday to 76½ bid on $4 million of volume, a source said.

The bonds climbed 3¾ points to 74 bid on $22 million of supply in Thursday’s session.

The Leawood, Kan.-based movie theater owner and gold and silver mine investor’s stock also climbed 17.99% on Friday to finish at $14.43.

Bausch Health up

Bausch Health’s senior notes rallied about 2¾ points to 3 points in mostly light trading, sources said.

The company’s 9¼% senior notes due 2026 (B3/B/B) jumped 2 7/8 points to 84½ bid on $3 million of paper traded.

Bausch Health’s 7% senior notes due 2028 (B3/B/B) climbed 3 points to 68½ bid on lighter supply totaling $1 million.

The Laval, Quebec-based pharmaceutical company’s 6¼% senior notes due 2029 (B3/B/B) also traded 2¾ points better at 62½ bid by the afternoon.

Volume totaled $1 million.

Diebold Nixdorf flat

Diebold Nixdorf’s 8½% notes due 2024 (Caa1/CCC-) went out mostly flat on Friday at the 50 bid area, a market source said.

“They’ve been staying around the 45, 50 area the last couple of weeks,” the source said. “They were around 95 last month.”

The Hudson, Ohio-based financial technology company earlier in the month reported a wide first-quarter loss and a revised and lower outlook for fiscal 2022 revenue.

Greenland paper plunges

Shanghai-based real estate developer Greenland Global Investment’s 5.6% senior notes due Nov. 13, 2022 (B3) sank 17½ points to 35½ bid ahead of the long U.S. holiday weekend, a source said.

Volume was light but active on $2 million of secondary activity.

Greenland Global said in a regulatory filing on Friday that it was seeking to extend the maturity on $488 million of 6¾% notes due June 25, 2022 following adverse effects from Covid-19 and pandemic control measures.

Greenland said in the filing Friday that approximately 50% of its sales offices have suspended their business due to pandemic-related restrictions.

The company holds $12 million of the bonds that were issued as a $500 million deal and guaranteed by parent Greenland Holding Group Co. Ltd.

Distressed index higher

S&P U.S. High Yield Corporate Distressed Bond index returns continued to improve on Thursday.

One-day total returns climbed to 0.92% from 0.59% on Wednesday, minus 0.31% on Tuesday and 0.19% on Monday.

Month-to-date total returns rose to minus 8.43% from minus 9.26% on Wednesday, minus 9.8% on Tuesday and minus 9.52% at the week’s start.

Year-to-date index returns also improved to minus 15.65% on Thursday, compared to minus 16.42% on Wednesday, minus 16.91% on Tuesday and minus 16.66% on Monday.

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