AMC bonds lower in strong volume; Bausch rises; CSC paper down; Carvana stages rally

By Cristal Cody

Tupelo, Miss., Dec. 9 – Several distressed names saw heavy trading in the secondary market over the afternoon on Friday.

AMC Entertainment Holdings, Inc.’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) were at the top of the list with more than $21 million of paper changing hands. The notes were quoted down nearly ¾ point and trading in the high 40s.

Bausch Health Cos. Inc.’s 9¼% senior notes due 2026 (Ca/CCC/CC) were quoted over 2¾ points higher on more than $10 million of secondary volume.

Meanwhile, Cablevision Systems Corp. subsidiary CSC Holdings LLC’s 4 1/8% senior notes due 2030 (B1/B+) dropped ¼ point with the issue among the most active names seen trading over the day.

Carvana Co. disappeared from the most active distressed names moving Friday but gained more than 2 points to about 3½ points in lighter volume after heavy volatile midweek trading.

Carvana’s 10¼% senior notes due 2030 (Caa2/CCC) added more than 2¾ points on $8 million of paper traded on Friday.

The online car retailer’s stock also moved closer to nearly recovering all of Wednesday’s slide on Thursday and Friday.

Market tone ended on a flat to weaker note during the session.

The S&P 500 index closed off 0.73%.

The iShares iBoxx High Yield Corporate Bond ETF was flat at $75.04.

Measured market volatility was slightly higher with the CBOE Volatility index up 2.42% to $22.83.

AMC under pressure

AMC’s bonds headed into the weekend under pressure after declining over much of the week, a source said.

The 7½% senior secured first-lien notes due 2029 (Caa1/B-) declined nearly ¾ point to a 48 handle. Secondary supply hit more than $21 million.

The bonds were quoted Tuesday off more than 2½ points at the 52½ bid area.

AMC’s issue has dropped about 9 points since breaking for the Thanksgiving holiday.

The Leawood, Kan.-based movie theater owner and gold and silver mine investor’s stock was down 2.14% at $5.94 after dropping nearly 10% on Thursday.

Bausch improves

Bausch’s notes were about 1½ points to more than 2 points higher on Friday in active trading totaling more than $19 million, a market source said.

Bausch Health Americas, Inc.’s 9¼% senior notes due 2026 (Ca/CCC/CC) were quoted over 2¾ points higher around 73 bid on more than $10 million of secondary volume.

Bausch Health Cos.’ 11% senior secured first-lien notes due 2028 (Caa1/B-/B) were less than a dime higher at 78¼ bid on $9 million-plus of supply on Friday.

The Laval, Quebec-based pharmaceutical company is underway with separating from unit Bausch + Lomb.

Cablevision declines

In other active names, CSC’s 4 1/8% senior notes due 2030 (B1/B+) dropped ¼ point to head out at 75¾ bid on Friday, a source said.

The issue saw $10.34 million of volume over the session.

Moody’s Investors Service downgraded the company a week ago based on the company’s weak operating trends in 2022 and growing subscriber loss.

CSC is a subsidiary of New York-based communications and video services provider Cablevision Systems and Altice USA, Inc.

Carvana on mend

Carvana continued to put its midweek volatility aside on Friday with the company’s paper rallying more than 2 points to about 3½ points in lighter trading, a source said.

Carvana’s 10¼% senior notes due 2030 (Caa2/CCC) moved up to 44 7/8 bid, about 2 3/8 points higher on $8 million of paper traded on Friday.

The notes were up less than ½ point on Thursday on $11.7 million of volume after trading about ¼ point to 1 point lower on Wednesday on more than $30 million of activity.

Carvana sold $3.28 billion of the notes at par on April 27, 2022.

The 5 5/8% notes due 2025 (Caa2/CCC) also recovered 3½ points by the afternoon to trade around 38½ bid on $3.5 million of supply on Friday.

The notes had climbed 3 5/8 points on Thursday on $10.97 million of volume following a drop of 3 points on Wednesday on $9 million of trading.

Wedbush Securities analyst Seth Basham cut Carvana's target stock price to $1 on Wednesday on growing chances of a restructuring following news reports that a majority group of creditors signed an agreement to cooperate in restructuring negotiations.

The Phoenix-based online car retailer’s stock also nearly recovered all of Wednesday's slide when the equity sank 42.92%.

Shares rallied 29½% on Thursday and closed Friday up another 1.81% at $5.05.

Distressed index higher

S&P U.S. High Yield Corporate Distressed Bond index one-day returns improved on Thursday to 0.22% from minus 0.38% on Wednesday and minus 0.56% on Tuesday but remained down from returns of 0.27% on Monday.

Month-to-date total returns were 0.43% on Thursday, 0.22% on Wednesday, 0.6% on Tuesday and 1.16% on Monday.

Year-to-date total returns came to minus 25.12% on Thursday, minus 25.28% on Wednesday, minus 25% on Tuesday and minus 24.58% at the start of the week.

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