AMC notes soften; Diebold Nixdorf mixed on start of distressed exchange; Ligado steady

By Cristal Cody

Tupelo, Miss., Nov. 29 – Secondary supply thinned in the distressed debt space on Tuesday with a few names seen attracting stronger trading action.

AMC Entertainment Holdings, Inc.’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) declined ¼ point on $11.25 million of volume in one of the more active distressed issues.

Diebold Nixdorf Inc.’s bonds were mixed in thin trading with the secured notes mostly flat and the senior paper up more than 5 points after the company announced the start of distressed exchange offers and consent solicitations for the issues.

The junk space saw some gains on Tuesday as risk-on tone improved.

The iShares iBoxx High Yield Corporate Bond ETF rose 32 cents, or 0.43%, to $74.54.

The CBOE Volatility index receded 1.62% to $21.85 after rising nearly 10% on Monday.

Ligado Networks’ 15½% senior secured first-lien notes due 2023 (Caa1) were little changed in strong secondary supply that placed it as the most traded distressed issue seen over the session.

AMC paper lower

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) declined ¼ point to head out at 35 bid, a source said.

The notes were among the most active distressed issues traded on Tuesday on $11.25 million of secondary volume.

The issue was down about 1¼ points to 1¾ points on Monday.

AMC’s notes have slid nearly 20 points since the start of the month.

The Leawood, Kan.-based movie theater owner and gold and silver mine company’s stock finished the day up 1.02% at $7.43.

Diebold Nixdorf mixed

Diebold Nixdorf’s notes were mixed on Tuesday in mostly light trading after the company reported the distressed debt exchange offers.

The 8½% senior notes due 2024 (Ca/CCC-) jumped to 60 bid by the close, a market source said.

The bonds went out Monday at 53½ bid.

Diebold Nixdorf’s 9 3/8% senior secured notes due 2025 (Caa2/CCC+) traded flat to modestly lower on Tuesday at the 70¾ bid area.

The company announced late Monday the start of exchange offers and consent solicitations for the 8½% notes, 9 3/8% notes and the 9% euro-denominated senior secured notes due 2025 issued by Diebold Nixdorf Dutch Holding BV.

Diebold Nixdorf also reported on Monday that it entered into an amendment to the transaction support agreement with certain subsidiaries and majority holders of its term loans and bonds.

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’s exchange offers expire Dec. 23.

Ligado mostly flat

Ligado Networks’ 15½% senior secured first-lien notes due 2023 (Caa1) went out mostly flat at 31 bid in strong secondary trading on Tuesday, a source said.

The bonds saw $13 million of paper changing hands.

The Reston, Va.-based satellite communications company’s issue traded at par in 2021.

Distressed returns positive

S&P U.S. High Yield Corporate Distressed Bond index one-day returns were 0.11% on Monday, down from 0.24% on Friday but improved from minus 0.41% in the same session a week ago.

Month-to-date total returns rose to 0.39% on Monday from 0.28% on Friday and from minus 0.72% in the week-ago session.

Year-to-date total returns were minus 25.38% on Monday, compared to minus 25.47% on Friday and minus 26.2% the same day last week.

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