Talen Energy mixed; AMC secured notes decline; Endo trades higher; Clear Channel down

By Cristal Cody

Tupelo, Miss., June 10 – Bonds from Talen Energy Supply LLC and AMC Entertainment Holdings, Inc. remained at the top of heavily traded distressed issues seen Friday.

Talen’s bonds were mixed but mostly softer after widening over most of the week.

AMC Entertainment’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) were down 2 5/8 points on the day.

Stocks sold off in a flight-to-safety bid on Friday after the Labor Department announced inflation had climbed by the highest pace in over 40 years.

The Labor Department reported the May Consumer Price Index jumped by a seasonally adjusted 1%, even weaker than the 0.7% increase analysts forecasted and softer than April’s increase of 0.3%.

The annual CPI rate in May climbed 8.6%, “marking the worst inflation rate so far in this cycle and the highest annual price gain since December 1981,” according to a Confluence Investment Management note on Friday.

The Labor Department said the indexes for shelter, gasoline and food were the largest contributors in the increase.

The S&P 500 index sank 2.91%, while the Nasdaq closed down 3.52%.

The iShares iBoxx High Yield Corporate Bond ETF slid $1.31 to finish the session at $75.63.

Measured market volatility was climbing with the “Fear Factor” index up more than 6%. The Chicago Board Options Exchange’s CBOE Volatility index went out 6.36% higher at 27.75.

Elsewhere, Endo International plc’s paper improved about ½ point to 3 points in light trading action.

Also, paper from Clear Channel Outdoor Holdings, Inc. was down 3 points and yielding over 13% on Friday, a source said.

Talen mostly soft

Talen Energy’s bonds remained volatile in the secondary market on Friday, a source said.

The company’s 6½% senior notes due 2025 (/D/C) fell more than ¾ point to trade near the 68 bid area on $17 million of secondary action by late afternoon.

The issue was quoted as high as 71 bid on Friday before going out late in the day at 65 bid.

The company’s 10½% senior notes due 2026 (/D/C) also traded flat to ¼ point better at 68½ bid on $10 million of volume.

The Woodlands, Tex., and Allentown, Pa.-based power generation and infrastructure company’s paper remains up from trading at the low 40s bid range before the company filed for Chapter 11 bankruptcy in May.

AMC trades lower

Meanwhile, AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) dropped 2 5/8 points to 72¼ bid on $9 million of paper turning over Friday, a market source said.

The issue was going out about 2¾ points lower on the week.

The Leawood, Kan.-based movie theater owner and gold and silver mine investor’s bonds are down nearly 5 points since the end of May.

Endo improves

In other distressed paper, Endo Finance LLC’s 6% senior notes due 2028 (Caa3/CC) traded ½ point better at 5 bid on Friday, a source said.

Volume was light with $2 million reported.

The issue was ending the week about 1½ points lower.

Endo’s bonds sank more than 35 points in May after the company reported a first-quarter loss and forecasted a second-quarter loss.

The Dublin-based pharmaceuticals maker has settled several opioid-related lawsuits in 2021 and 2022, including with Alabama, San Francisco and Florida.

Clear Channel softens

Also active on Friday, Clear Channel Outdoor’s 7¾% senior notes due 2028 (Caa2/CCC) dropped 3 points on $7 million of trading supply, a source said.

The New York-based outdoor advertising company’s issue was quoted at 78 bid.

Distressed index lower

The S&P U.S. High Yield Corporate Distressed Bond index was mostly soft over most of the week.

One-day total returns on Thursday were minus 0.35%, compared to minus 0.03% on Wednesday, minus 0.53% on Tuesday and a positive 0.27% return on Monday.

Month-to-date total returns softened on Thursday to minus 0.43% from minus 0.08% on Wednesday, minus 0.04% on Tuesday and 0.49% at the start of the week.

Year-to-date index returns fell to minus 14.88% from minus 14.58% on Wednesday, minus 14.55% on Tuesday and minus 14.1% 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.