Bausch Health notes active; Telesat gains; Cinemark, AMC Entertainment rally continues

By Abigail W. Adams

Portland, Me., May 31 – It was a relatively quiet return from the Memorial Day weekend in the distressed debt space although several badly battered credits continuing to rally despite a pause in the broader market.

The reopening trade returned to focus on Tuesday as investors digest earnings from the retail, entertainment and leisure and travel sectors, a source said.

AMC Entertainment Holdings, Inc.’s and Cinemark Holdings, Inc.’s junk bonds continued to gain.

Bausch Health Cos. Inc.’s 5% senior notes due 2028 were active although little changed after a strong rally the previous week.

Telesat Corp.’s 6½% senior notes due 2027 continued to add in heavy volume.

Entertainment gains

Investors were showing renewed confidence in the entertainment and leisure companies with AMC and Cinemark both extending their rallies despite a pullback in broader markets.

AMC’s 7½% first-lien senior notes due 2029 (Caa1/B-) extended their rally after closing out the previous week strong.

The notes rose another 1¼ points on Tuesday to close the day at 91¾.

The yield on the notes was now 9.171%.

The 7½% notes have been on a downward spiral since early May with CCC credits among the worst performers in the market downturn.

The notes had been hovering around an 85-handle since mid-May but jumped more than 4 points as buyers flooded the market late last week.

Cinemark’s 5¼% senior notes due 2028 also continued to add after last week’s surge.

The notes rose another 1 point to close the day at 90 with a yield of 7.3%, according to a market source.

Bausch Health active

Bausch Health’s 5% senior notes due 2028 were active although little changed on Tuesday.

The notes continued to trade on a 63-handle and stood poised to close the day at 63 5/8, according to a market source.

The yield on the notes was 14.653%.

There was $17 million in reported volume.

Telesat gains

Telesat’s 6½% senior notes due 2027 (Caa2/CCC+) continued to rise in active trading.

The notes added 1¾ points to close the day at 47¼, according to a market source.

The yield on the notes was 24.75%.

There was $10 million in reported volume.

Telesat’s senior notes have seen renewed interest since early May when the satellite communications company reported earnings.

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