CHS bonds move higher; Bed Bath & Beyond little changed; Embarq flat; Lumen declines

By Cristal Cody

Tupelo, Miss., Oct. 28 – CHS/Community Health Systems, Inc.’s paper climbed about 2 points to more than 5 points on Friday after adding about 3 points to over 6 points in the prior session following a weak earnings report.

Volume was steady but down from the heavy trading of more than $100 million seen over Thursday’s session, a source said.

Bed Bath & Beyond Inc.’s senior notes went out mostly flat to modestly higher on Friday after the retailer announced plans to sell additional stock.

Bed Bath & Beyond’s 5.165% senior notes due 2044 (C/CC) traded up more than ½ point.

Stocks went into the weekend stronger with indices more than 2% higher across the board.

The iShares iBoxx High Yield Corporate Bond ETF added 57 cents, or 0.77%, to head out at $74.55.

Measured market volatility dropped over the day with the CBOE Volatility index down 6% at 25.75.

Embarq Corp.’s 7.995% notes due 2036 (Caa2/CCC/CCC) traded mostly unchanged on Friday in light secondary activity.

Paper from former Embarq owner Lumen Technologies, Inc. softened during the session.

CHS continues gains

CHS/Community Health’s 5¼% notes due 2030 (B2/B) climbed 4 points to around 70½ bid on Friday in light volume totaling $4 million, a source said.

The bonds traded Thursday 3 3/8 points better on more than $21 million of supply.

CHS’ 5 5/8% notes due 2027 (B2/B) climbed over 5¼ points on Friday to 80 bid on $7 million of paper traded.

The Franklin, Tenn.-based operator of acute care and outpatient facilities on Wednesday reported a third-quarter loss of $42 million, down from income of $111 million a year ago.

Bed Bath & Beyond mixed

Bed Bath & Beyond’s paper saw strong trading on Friday but went out mostly flat to modestly higher after the retailer announced plans to sell additional stock, a source said.

The 3.749% senior notes due 2024 (C/CC) were mostly unchanged at 21½ bid.

Bed Bath & Beyond’s 5.165% senior notes due 2044 (C/CC) traded more than ½ point better from Thursday at 11½ bid.

The company announced Friday that it filed with the U.S. Securities and Exchange Commission to register up to $150 million of additional shares for sale under its at-the-market offering program.

Bed Bath & Beyond said the program first launched on Aug. 31 and it previously sold $75 million of shares.

In the previous week, the retailer announced offers to exchange its senior notes for new second-lien and third-lien debt.

The Union, N.J.-based home products retailer is underway in a search for a new chief executive and strategic changes that include closing stores following steep second-quarter losses.

Lumen notes lower

Embarq’s 7.995% notes due 2036 (Caa2/CCC/CCC) were quoted Friday mostly unchanged at 40¾ bid in light secondary activity, a source said.

Connect Holding II LLC, doing business as Brightspeed, earlier in the month closed on its acquisition of the Overland Park, Kan.-based telecommunications company from Lumen Technologies.

Lumen’s 7.65% notes due 2042 (B2/BB-) dropped about 2¼ points to a print of 65.65 in light trading by late afternoon, a source said.

Volume totaled about $2.5 million.

Distressed returns higher

S&P U.S. High Yield Corporate Distressed Bond index one-day returns improved on Thursday to 0.7% from 0.67% on Wednesday, 0.18% on Tuesday and 0.01% on Monday.

Month-to-date total returns moved up to 0.15% from minus 0.54% on Wednesday, minus 1.2% on Tuesday and minus 1.38% at the week’s start.

Year-to-date total return improved to minus 26.1% from minus 26.61% on Wednesday, minus 27.1% on Tuesday and minus 27.23% 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.