AMC bonds, stock climb in heavy supply; CURO higher; DKNY owner’s paper, shares slide

By Cristal Cody

Tupelo, Miss., Dec. 1 – AMC Entertainment Holdings, Inc.’s distressed paper climbed 1¼ points to more than 5 points higher in heavy secondary supply on Thursday.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) rallied 5½ points on more than $30 million of trading.

The 7½% notes due 2029 (Caa1/B-) were nearly as active and trading 1¼ points better.

Secondary trading in the company’s stock was reported halted on Thursday following heavy volume with the shares also rallying.

CURO Group Holdings Corp.’s 7½% senior secured notes due August 2028 (B3/B-) were also flying higher on Thursday with the issue quoted up 4½ points.

Markets grew somewhat cautious ahead of the November jobs report due out Friday.

Stock indices mostly held onto Wednesday’s gains. The S&P 500 index edged down 0.09%.

The iShares iBoxx High Yield Corporate Bond ETF fell 7 cents, or 0.09%, to $75.60.

The CBOE Volatility index moved below a 20 handle with the index off 3.55% at $19.85.

The Federal Reserve Bank of New York on Thursday reported the weekly economic index for the week of Nov. 26 rose to a preliminary estimate of 1.49% from 1.39% in the prior week on the back of an increase in retail sales, steel production and fuel sales, along with a drop in initial unemployment insurance.

Meanwhile, G-III Apparel Group, Ltd. turned negative on Thursday as its stock plummeted 45% and its bonds dropped nearly 8 points in heavy trading the day after the clothing manufacturer’s soft third-quarter post.

AMC on upswing

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) climbed 5½ points in heavy trading totaling $34.5 million on Thursday, a market source said.

The bonds were quoted at 42 bid.

AMC’s 7½% notes due 2029 (Caa1/B-) were nearly as active, the source said, with the bonds up 1¼ points at 58 bid on $32.5 million of volume.

AMC’s 10% notes were yielding about 44%, while the 2029 paper carried a yield over 19%.

The Leawood, Kan.-based movie theater owner and gold and silver mine company’s stock also saw heavy trading action on volume of about 96 million shares, versus an average volume of 25 million shares.

Shares closed up 13% at $8.17.

CURO improves

CURO Group’s 7½% senior secured notes due August 2028 (B3/B-) saw gains on Thursday with the issue trading 4½ points better at 45½ bid, a source reported.

Trading was active on $4 million of volume.

CURO’s distressed bonds were yielding about 27%. The issue started the year trading better than par.

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

G-III bonds down

New York-based clothing manufacturer G-III Apparel’s bonds and stock slid on Thursday a day after the DKNY owner reported third-quarter results, a source said.

The company’s 7 7/8% senior secured notes due 2025 (Ba3/BB) dropped 7¾ points by the close to 85¼ bid on more than $35 million of paper traded.

G-III’s shares sank 45% to $11.97.

The company said Wednesday sales rose 6.2% in the quarter, while profit fell to $1.26 per share from $2.16 a year earlier.

November returns positive

S&P U.S. High Yield Corporate Distressed Bond index one-day returns rose to 0.26% on Wednesday from minus 0.34% on Tuesday and 0.11% on Monday.

Month-to-date total returns for November ended at 0.3% on Wednesday, compared to 0.05% on Tuesday and 0.39% on Monday.

Year-to-date total returns remained weak at minus 25.45% on Wednesday, minus 25.43% on Tuesday and minus 25.38% at the start of the week.

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