Diamond Sports secured notes lower; CURO drops to 50s handle; CHS paper softens

By Cristal Cody

Tupelo, Miss., Sept. 13 – Diamond Sports Group LLC’s secured notes extended declines on Tuesday after losing more than 1 point at the start of the week.

The distressed sports broadcast group’s 5 3/8% senior secured notes due 2026 (Caa3/CCC+) went out more than ¼ point lower after shedding more than 1¼ points on Monday.

Diamond Sports’ 6 5/8% senior notes due 2027 (Ca/CCC-) saw strong trading action during the session with the notes flat to ¼ point higher.

CURO Group Holdings Corp.’s 7½% senior secured notes due August 2028 (B3/B-) also stayed under pressure a second day and were trading with a handle in the 50s.

The notes shed 2¼ points by the close on Tuesday after declining more than ¾ point on Monday.

Meanwhile, Community Health Systems Inc.’s 6 7/8% senior secured notes due 2029 (Caa2/CCC) gave back some of the prior week’s gains and declined ¾ point over the session.

In the distressed pharmaceutical space, bankrupt Endo International plc’s 9½% senior secured notes due 2027 quieted after losing 4 points on Monday.

Market action pulled back on Tuesday as volatility rose and stocks tanked after the Labor Department reported the U.S. Consumer Price Index rose 8.3% over the last 12 months, higher than the 8.1% increase the market was expecting.

On a seasonally adjusted basis, the inflation index was up 0.1% in August after ending July unchanged.

The S&P 500 slid 4.32%, the Dow Jones industrial average dropped 3.94% and the Nasdaq slid 5.16% by the closing bell.

The iShares iBoxx High Yield Corporate Bond ETF dropped $1.73, or 2.28%, to $74.31 over the session.

The CBOE Volatility index climbed 14.24% to 27.27.

Diamond Sports mixed

Diamond Sports’ 5 3/8% senior secured notes due 2026 (Caa3/CCC+) went out more than ¼ point lower on Tuesday at 17 bid after shedding over 1¼ points on Monday, a source said.

The company’s 6 5/8% senior notes due 2027 (Ca/CCC-) were flat to ¼ point higher at 8½ bid.

Parent company Sinclair Broadcast Group, Inc. this year “deconsolidated” Diamond Sports from its financial statements.

The Chesapeake, Va.-based sports broadcast group completed a distressed debt exchange in March.

CURO notes down

CURO Group’s 7½% senior secured notes due August 2028 (Caa1/CCC+) dropped 2¼ points to 57¾ bid in fairly busy trading on Tuesday, a source said.

The notes shed more than ¾ point the previous day.

The issue has steadily declined over the year from a 90s handle in February.

CURO sold $750 million of the notes on July 16, 2021 at par.

The Wichita, Kan.-based consumer credit provider’s stock closed Tuesday down 7.02% at $5.96.

CHS paper gains

The 6 7/8% senior secured notes due 2029 (Caa2/CCC) from CHS/Community Health Systems, Inc. traded down ¾ point in strong trading activity on Tuesday, a source said.

The bonds were quoted at 63¾ bid.

The Franklin, Tenn.-based operator of acute care and outpatient facilities’ notes were flat on Monday after finishing the prior week up more than 2 points.

Endo quiets

Endo Finance LLC’s 9½% senior secured notes due 2027 stayed quiet in the secondary market over the day after losing 4 points on Monday, a source said.

The bonds went out Monday down 4 points at 19½ bid.

The secured issue has declined more than 7 points since August.

Endo filed for Chapter 11 bankruptcy in August in the U.S. Bankruptcy Court for the Southern District of New York after missing interest payments on several outstanding bonds.

The Dublin-based pharmaceuticals company entered into a restructuring agreement with stalking horse bidder Ad Hoc First Lien Group, which is made up of certain creditors holding more than 50% of its outstanding secured debt.

Distressed index positive

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns stayed positive on Monday at 0.3%.

Month-to-date total returns were 0.37% on Monday, while quarter-to-date total returns totaled 2.35%.

Year-to-date total returns started the week at minus 20.81%.

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