Coinbase up in distressed trading; AMC paper gives back nearly 10 points; Diebold down

By Cristal Cody

Tupelo, Miss., Nov. 22 – Several distressed names saw an uptick in secondary trading with some issues among the most active junk bonds traded on Tuesday.

Coinbase Global, Inc.’s notes improved after Moody’s Investors Service said it placed the issuer and the senior bond ratings on review for downgrade.

Coinbase’s 3 3/8% notes due 2028 (Ba2/BB) rose ¾ point on the day and have added about 1¾ points since Friday.

Risk-on tone was stronger over the session with measured volatility moving lower. Stock indices climbed more than 1%. The S&P 500 index closed up 1.36%.

The iShares iBoxx High Yield Corporate Bond ETF added 54 cents, or 0.73%, to $74.74.

The CBOE Volatility index moved down 5% to $21.29.

Meanwhile Tuesday, AMC Entertainment Holdings, Inc.’s notes fell more than ¾ point to more than 2 points in active trading.

AMC’s 7½% notes due 2029 (Caa1/B-) were down nearly 2¾ points on secondary volume totaling more than $11 million. The notes have given back nearly 10 points over the past week.

Diebold Nixdorf Inc.’s bonds also remain weak since the company reported a heavy third-quarter loss earlier in the month.

Diebold Nixdorf’s 9 3/8% senior secured notes due 2025 (Caa2/CCC+) were among the most active issues over the session and went out down more than 1½ points on the day.

Coinbase notes up

Coinbase’s 3 3/8% notes due 2028 (Ba2/BB) rose ¾ point to the 55¼ bid area by the end of the session, a source said.

Trading was strong on $11.8 million of secondary supply on Tuesday.

The bonds have improved from where the issue was quoted Friday at 53½ bid.

Moody’s said Monday that it placed the company and the Ba2 senior note ratings on review for downgrade following heightened market turbulence in the crypto sector amid the FTX collapse.

Coinbase, a Wilmington, Del.-based cryptocurrency exchange platform, sold $1 billion of the 3 3/8% notes at par on Sept. 14, 2021.

AMC declines

Bonds from AMC fell more than ¾ point to more than 2 points in strong trading action on Tuesday, a source said.

AMC’s 7½% notes due 2029 (Caa1/B-) dropped nearly 2¾ points to head out at the 54 bid area on more than $12 million of paper traded.

The bonds were down nearly 10 points from where the issue traded a week ago at 63 bid.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) were down more than 1 point at 33 bid on more than $6 million of secondary volume on Tuesday.

The bonds were quoted in the same session a week ago at 41¾ bid.

The Leawood, Kan.-based movie theater owner and gold and silver mine company earlier in November posted a weak third-quarter report.

Diebold Nixdorf lower

Diebold Nixdorf’s 9 3/8% senior secured notes due 2025 (Caa2/CCC+) went out Tuesday down more than 1½ points at 69¼ bid, a market source said.

The notes were actively traded on $11.3 million of supply.

The issue has softened about 2½ points in the back half of November.

Earlier in the month, Diebold Nixdorf reported lower third-quarter revenue and an earnings loss.

The ATM manufacturer announced in October it entered into an agreement with financial stakeholders to refinance debt with near-term maturities and provide the company with $400 million in additional financing.

The Hudson, Ohio-based financial and retail technology company expects the agreement with the holders of its term loans, secured notes due 2025 and unsecured notes due 2024 to be completed before Dec. 31.

Distressed returns drop

S&P U.S. High Yield Corporate Distressed Bond index one-day returns dropped on Monday to minus 0.41% from 0.11% on Friday and 1.2% in the same session a week ago.

Month-to-date total returns softened to minus 0.72% on Monday from minus 0.31% on Friday and minus 0.67% in the week-ago session.

Year-to-date total returns were minus 26.2% on Monday versus minus 25.9% on Friday and minus 26.17% the same day a week ago.

© 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.