DISH Network notes higher; Bath & Body Works improves; Bed Bath & Beyond gives back

By Cristal Cody

Tupelo, Miss., July 21 – DISH Network Corp.’s notes traded about ¼ point to more than 3 points better on Thursday, though the company’s paper remains soft.

DISH is now considered among the largest or most distressed names with more than $11.7 billion of debt, according to a BofA Securities, Inc. note.

“Some of the bonds are yielding over 14%,” a source said. “DISH has some paper that is secured and some paper that is not secured. The secured paper is, of course, trading better than the unsecured paper.”

DISH’s notes were among the most active distressed names seen trading Thursday on more than $60 million of secondary volume, a market source said.

Financial markets were stronger on Thursday with stock indices all higher.

The iShares iBoxx High Yield Corporate Bond ETF added 91 cents, or 1.19%, to end at $77.

“The tone was much, much better,” a source noted.

In the retail space, Bath & Body Works, Inc.’s 6 7/8% senior notes due 2035 (Ba2/BB) rose ¼ point and were trading about 3¼ points higher this week.

Bed Bath & Beyond Inc.’s notes fell about 1¼ points on Thursday after rallying in the prior session.

“The retail sector has been under a lot of pressure,” a market source said.

Distressed returns climbed midweek with the S&P U.S. High Yield Corporate Distressed Bond index up more than 1% on Wednesday.

DISH improves

DISH’s bonds on Thursday were trading with handles in the low 60s up to the high 90s and yields of 7¼% to more than 14½%, according to a market source.

“The secured paper is trading width a 9.8% yield, and the other paper that is not secured is trading with a 13% at least yield,” a source said.

Overall volume was strong with more than $66 million of the Englewood, Colo.-based satellite channel provider’s paper traded over the session.

DISH DBS Corp.’s 5¼% senior secured notes due 2026 (Ba3/B+) were quoted at 84 bid, up about 2½ points on heavy supply of nearly $25 million.

DISH’s 5 1/8% senior notes due 2029 (B3/B) picked up ½ point to trade at 63½ bid and yielding 13.4% on $6 million of volume on Thursday.

The cable company’s 7¾% senior notes due 2026 (B3/B) also jumped 2 points to 82 bid and a yield of 13.83% on $3 million of secondary supply.

Bath & Body Works up

Bath & Body Works’ 6 7/8% senior notes due 2035 (Ba2/BB) rose ¼ point to 87¾ bid on Thursday, a source said.

The notes were trading about 3¼ points higher this week.

Bath & Body Works’ bonds moved at the 123 bid range at the start of the year.

The Columbus, Ohio-based company changed its name from L Brands Inc. after it spun off Victoria’s Secret into an independent public company in August 2021.

Bed Bath & Beyond lower

Bed Bath & Beyond’s notes fell about 1¼ points on Thursday after rallying in the prior session, a source said.

The distressed retailer’s 3.749% senior notes due 2024 (Caa3/B-) mostly held onto Wednesday’s gains, going out down 1¼ points at 45¼ bid by the day’s end.

Bed Bath & Beyond’s notes had added about 6½ points the previous day.

The Union, N.J.-based home products retailer’s 5.165% senior notes due 2044 (Caa3/B-) also gave back 1¼ points on Thursday to head out at 19½ bid.

Distressed returns jump

The S&P U.S. High Yield Corporate Distressed Bond index jumped more than 1% on Wednesday.

One-day total returns climbed to 1.18% from 0.34% on Tuesday and 0.67% at the start of the week.

Month-to-date total returns were in the black at 0.38% on Wednesday, versus minus 0.79% on Tuesday and minus 1.13% on Monday.

Year-to-date total returns improved to minus 22.33% from minus 23.24% on Tuesday and minus 23.5% on Monday.

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