Coinbase notes under pressure; CURO declines; Diamond Sports drops; Party City moves up

By Cristal Cody

Tupelo, Miss., Nov. 18 – Coinbase Global, Inc.’s paper fell about ½ point to more than 2¼ points on Friday as the crypto space stays under pressure in the wake of the FTX collapse.

Coinbase’s 3 5/8% notes due 2031 (Ba2/BB) dropped ½ point on more than $13.5 million of volume.

“That’s because it’s crypto-related,” a source said of the company’s paper taking a hit. “Everybody’s just running to the hills right now.”

CURO Group Holdings Corp.’s notes were down about ¼ point to more than 5 points with one issue more liquid, a source said.

CURO's 7½% senior secured notes due August 2028 (Caa1/CCC+) slid about 6 points to 40¾ bid in thin activity totaling less than $1 million on Friday.

The Wichita, Kan.-based consumer credit provider sold $750 million of the notes on July 16, 2021 at par.

Diamond Sports Group LLC’s paper “traded down” in more active supply after the company announced Friday it will discuss third-quarter results later in November, a source said.

The secured and unsecured notes were off ¼ point to 1 1/8 points.

Financial markets seemed soft at the open on Friday but improved by the close with stock indices all higher, sources said.

The iShares iBoxx High Yield Corporate Bond ETF added 16 cents, or 0.22%, to $74.23.

The CBOE Volatility index receded more than 3% over the day to $23.12.

Oil remained soft after declining nearly $4 on Thursday.

West Texas Intermediate crude oil benchmark futures for December deliveries settled Friday down $1.56 at $80.08 a barrel.

Party City Holdings Inc.’s small $156 million outstanding of 8.061% senior secured first-lien floating-rate notes due 2025 (Caa1/CCC+) rallied 3¼ points in light trading on Friday after the company was downgraded by S&P Global Ratings.

Coinbase trades down

Coinbase’s notes fell about ½ point to more than 2¼ points on Friday with the 3 5/8% notes due 2031 (Ba2/BB) the most active, a source said.

The bonds were down ½ point at 50½ bid on more than $13.5 million of secondary volume.

Coinbase’s 3 3/8% notes due 2028 dropped over 2 points to 53½ bid in thin activity during the session.

The Wilmington, Del.-based cryptocurrency exchange platform sold $1 billion of the notes due 2028 and $1 billion of the 2031 notes at par on Sept. 14, 2021.

Diamond Sports lower

Diamond Sports’ paper went out down ¼ point to more than 1 point on Friday, a source said.

The 5 3/8% senior secured notes due 2026 (Caa2/CCC-) declined 1 1/8 points to 16¾ bid on $4 million of volume.

Diamond Sports’ 6 5/8% senior notes due 2027 (Ca/C) were quoted off ¼ point at 4¼ bid.

The issue saw $3 million of paper traded on Friday.

Diamond Sports and parent Sinclair Broadcast Group Inc. announced Friday they will host a conference call on Nov. 28 to discuss the sports broadcast group’s third-quarter results.

Sinclair released its third-quarter report on Nov. 2.

S&P Global Ratings lowered the ratings on Diamond Sports and its notes on Nov. 3, citing a growing chance of a liquidity event or bankruptcy filing.

The bonds had seen some improvements back in September on news reports the Chesapeake, Va.-based sports broadcast group may be acquired by the MLB, NBA and NHL.

Sinclair Broadcast reported earlier in 2022 that it “deconsolidated” Diamond Sports from its financial statements.

Party City improves

Party City’s 8.061% senior secured first-lien floating-rate notes due 2025 (Caa1/CCC) traded 3¼ points better on Friday at 36¼ bid by the day’s end, a source said.

The issue saw $2 million of secondary action.

The $156 million outstanding of notes have declined from where the issue was seen in August carrying a 60 handle.

S&P said Friday it dropped the issuer and secured debt ratings to CCC from CCC+ and the senior debt ratings to CC from CCC- on the view the company could pursue a restructuring within the next 12 months.

Parent Party City Holdco Inc. reported heavy third-quarter losses in the prior week.

The Woodcliff, N.J.-based party goods retailer has $23 million of senior notes coming due in August 2023.

Distressed returns drop

S&P U.S. High Yield Corporate Distressed Bond index one-day returns slid to minus 0.63% on Thursday from 0.07% on Wednesday, 0.82% on Tuesday and 1.2% on Monday.

Month-to-date total returns declined on Thursday to minus 0.42% versus 0.21% on Wednesday, 0.14% on Tuesday and minus 0.67% at the week’s start.

Year-to-date total returns widened to minus 25.98% from minus 25.51% mid-week, minus 25.56% on Tuesday and minus 26.17% on Monday.

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