AMC secured notes up; Bed, Bath & Beyond higher; Transocean bonds post week-long rally

By Cristal Cody

Tupelo, Miss., Aug. 5 – AMC Entertainment Holdings, Inc.’s bonds headed higher on Friday in strong secondary action, a day after the company reported improved second-quarter earnings and revenue, as well as a special dividend.

The paper was under ¼ point to more than 2 points better on more than $40 million of volume during the session.

Bed, Bath & Beyond Inc.’s 5.165% senior notes due 2044 (Caa3/B) improved 1 3/8 points on Friday.

Stocks finished mixed following stronger-than-expected jobs data, while volatility steadily declined over the week and went out Friday down 2.01%.

The CBOE Volatility index dropped 43 cents to 21.01 by the end of the session.

The Labor Department announced that total nonfarm employment rose by 528,000 in July, beating market forecasts of a 250,000 increase.

The iShares iBoxx High Yield Corporate Bond ETF declined 40 cents, or 0.51%, to $78.04.

Distressed secondary action stayed mostly light this week with the junk primary market quiet, blockbuster volume in the high-grade bond market and the better-than-expected job growth, market sources said.

Transocean Inc.’s 11½ senior guaranteed notes due 2027 (Caa3/CCC+) were among the week’s most active distressed issues traded following the offshore driller’s stronger second-quarter report Monday.

The notes were mostly flat on Friday but more than 5 points better on the week.

AMC bonds gain

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) rose 2¼ points to 83¾ bid by Friday afternoon, a source said.

The notes saw $28 million of paper changing hands.

AMC’s 7½% first-lien notes due 2029, priced at the start of the year, edged up less than ¼ point to a print of 91.81 on $13 million of volume by late afternoon.

AMC sold $950 million of the first-lien notes on Feb. 2, 2022 at par.

The Leawood, Kan.-based movie theater owner and gold and silver mine investor said Thursday it plans a special dividend of one AMC preferred equity unit for each share of AMC class A common stock.

AMC has applied to list the preferred equity units on the New York Stock Exchange under the symbol “APE” for trading starting Aug. 22.

The company’s stock jumped 18.86% on Friday to close at $22.18.

Bed Bath & Beyond up

Bed Bath & Beyond’s 5.165% senior notes due 2044 (Caa3/B-) were trading with a handle in the teens on Friday, a source said.

The notes were quoted at 17¾ bid, up 1 3/8 points on $2 million of secondary supply during the session.

The Union, N.J.-based home products retailer’s paper plunged in June following the company’s weak first-quarter earnings announcement and reported shake-up of senior management.

Transocean stronger

Transocean’s 11½% senior guaranteed notes due 2027 (Caa3/CCC+) went out Friday mostly flat on the day at the 97½ bid, 97 offered area, a source said.

The notes were among the week’s strongest and most traded issues, according to a BofA Securities Inc. research note on Friday.

The issue rose more than 7¼ points to 98.3 on the week on $135 million of volume, BofA said.

The Vernier, Switzerland-based offshore driller reported strong second-quarter results on Monday.

Distressed returns up

S&P U.S. High Yield Corporate Distressed Bond index total returns increased on Thursday.

One-day returns improved to 0.51% from 0.26% on Wednesday, 0.12% on Tuesday and 0.19% on Monday.

Month-to-date total returns rose to 1.08% on Thursday from 0.57% midweek, 0.31% on Tuesday and 0.19% at the week’s start.

Year-to-date total returns also were better at minus 19.81% versus minus 20.21% on Wednesday, minus 20.42% on Tuesday and minus 20.52% on Monday.

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