Bed Bath & Beyond rallies; AMC paper higher; Plains All American up; Bausch Health off

By Cristal Cody

Tupelo, Miss., Aug. 16 – Bed Bath & Beyond Inc.’s senior notes traded 2 points to about 4 points higher on Tuesday on nearly $20 million of volume with the distressed retail paper seeing gains so far in August.

Outside of junk emerging markets paper, AMC Entertainment Holdings, Inc.’s bonds were up ¾ point in one of the most active distressed names over the session.

Plains All American Pipeline, LP’s 6 1/8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Ba2/BB/BB) also picked up 1 point over the day.

Crude oil remained under pressure a second day and was off nearly $2.50 after declining more than $3 on Monday.

Markets ended mixed with stocks mostly higher and the junk space lower.

The iShares iBoxx High Yield Corporate Bond ETF declined 37 cents, or 0.47%, to $78.843

Measured market volatility was down. The CBOE Volatility index fell 1.3% to 19.69.

In other distressed paper active Tuesday, Bausch Health Cos. Inc.’s 9¼% senior notes due 2026 (Caa2/CCC/B) declined 1¼ points.

Bed Bath & Beyond up

Bed Bath & Beyond’s notes rose 2 points to about 4 points in strong secondary trading action over the session, a market source said.

The company’s stock climbed 29.06% on the day to $20.65.

Bed Bath & Beyond’s 3.749% senior notes due 2024 (Caa3/B-) added about 4 points on Tuesday to trade at a print of 53.68 on $10 million of volume.

The company’s 5.165% senior notes due 2044 (Caa3/B-) also were up 2 points at 31 bid on $9 million of trading by the close.

Bed Bath & Beyond’s paper has climbed more than 10 points since mid-July.

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

AMC notes stronger

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) went out at 86¾ bid, up ¾ point on the day, on $14 million of secondary supply, according to a source.

The company’s stock closed 2.56% higher at $24.81.

The Leawood, Kan.-based movie theater owner and gold and silver mine investor reported earlier in August that 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 beginning Aug. 22.

Plains All American improves

Plains All American Pipeline’s 6 1/8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Ba2/BB/BB) were quoted up 1 point at 85 bid and yielding over 78% on Tuesday, according to a market source.

Trading was steady on $4 million of volume.

The Houston-based natural gas and crude oil transporter’s issue was little changed from the start of the year.

Bausch trades down

Bausch’s 9¼% senior notes due 2026 (Caa2/CCC/B) declined 1¼ points on Tuesday on $4 million of secondary action, a source said.

The notes were quoted at 72¼ bid.

Bausch Health’s paper has been mostly lower since the Laval, Quebec-based pharmaceutical company reported Aug. 9 that second-quarter revenue was down 6%, while losses declined to $145 million from $595 million of losses a year ago.

Distressed returns grow

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns were 0.47% on Monday, up from 0.18% on Friday but down from 0.79% in the same session a week ago.

Month-to-date total returns were higher on Monday at 4.49% versus 4% on Friday and 2.1% in the week-ago session.

Year-to-date total returns improved to minus 17.11% on Monday, compared to minus 17.49% on Friday and minus 19% in the same session last week.

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