AMC paper gains in heavy trading; Bausch Health rallies; Rite Aid notes trade higher

By Cristal Cody

Tupelo, Miss., Nov. 10 – AMC Entertainment Holdings, Inc.’s paper traded about 1 1/8 points to 2½ points higher on Thursday on more than $60 million of secondary supply.

Markets were mixed on Thursday after seeing volatile trading following the release of the October Consumer Price Index, which rose a seasonally adjusted 0.4%, better than the 0.6% expected, a source said.

The overall CPI in October was still up 7.7% from a year ago.

Stocks jumped and indices rallied 3.7% to more than 7%. The Nasdaq closed up 7.35%.

The iShares iBoxx High Yield Corporate Bond ETF climbed $2.24, or 3.11%, to $74.19.

Volatility receded quickly. The CBOE Volatility index declined 10% to 23.46.

Distressed names including Bausch Health Cos. Inc. were seen higher on Thursday, sources said.

Bausch Health’s 9¼% senior notes due 2026 (Caa3/CC/C) rallied 6 points in active trading totaling more than $7.5 million.

Rite Aid Corp.’s 7½% senior secured notes due 2025 (B3/CCC-/CCC) traded 1 point better on the day, while its credit default swap spreads widened more than 100 basis points this week.

AMC perks up

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) traded 1 1/8 points higher on Thursday at 37½ bid in heavy supply totaling $31.5 million, a source said.

The company’s paper was among the most active junk and distressed names seen in the secondary market over the day.

AMC’s 7½% notes due 2029 (Caa1/B-) added about 2½ points to trade at 61 bid on $31 million of paper changing hands.

The bonds were down about 5 points on the week.

The Leawood, Kan.-based movie theater owner and gold and silver mine company’s notes were under pressure at the start of the week with AMC reporting Tuesday that third-quarter revenue rose, while net losses remained heavy.

Bausch improves

Bausch’s 9¼% senior notes due 2026 (Caa3/CC/C) were busy on Thursday in the secondary space with the issue quoted 6 points higher at 63¾ bid on more than $7.5 million of volume, a source said.

Bausch reported in September that about $5.58 billion of notes had been validly tendered in its offer to exchange existing senior notes for new secured notes.

The Laval, Quebec-based pharmaceutical company plans to spin off unit Bausch + Lomb.

Rite Aid up

Also Thursday, Rite Aid’s 7½% senior secured notes due 2025 (B3/CC/CCC) traded 1 point better on the day at 72 bid, a source said.

The bonds improved from trading at 70¾ bid on Monday.

Rite Aid announced last week a cash tender offer for the issue.

The Camp Hill, Pa.-based drug retailer was downgraded this week by both Fitch Ratings and S&P Global Ratings over the distressed tender offer.

Moody’s Investors Service said in a report Thursday that Rite Aid’s CDS spreads widened 104 bps for the past week ended Wednesday to 3,759 bps.

Distressed returns down

S&P U.S. High Yield Corporate Distressed Bond index one-day returns weakened on Wednesday to minus 0.98% from minus 0.18% on Tuesday and 0.26% on Monday.

Month-to-date total returns for November dropped to minus 3.21% on Wednesday versus minus 2.26% on Tuesday and minus 2.09% at the start of the week.

Year-to-date total returns softened to minus 28.06% on Wednesday, compared to minus 27.35% on Tuesday and minus 27.22% 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.