Shutterfly secured notes lower in active trade; CSC gains continue; Telesat down

By Abigail W. Adams

Portland, Me., Jan. 4 – The distressed debt space saw another strong session on Wednesday with bond markets strong despite the release of the Federal Open Market Committee’s December meeting minute notes, which reflected a continued hawkish sentiment and commitment to raise rates to tame inflation.

The S&P U.S. High Yield Corporate Distressed Bond index closed Wednesday with a 0.74% gain.

However, the gains were not felt uniformly across the space.

Shutterfly Inc.’s 8½% senior secured notes due 2026 (B2/CCC) were lower in heavy volume.

Telesat Corp.’s 5 5/8% senior notes due 2026 (B2/CCC+) dropped more than 1 point in light volume.

However, Altice USA Inc. subsidiary CSC Holdings LLC’s junk bonds (Caa1/B-) continued to improve in active trade after closing the previous year near their historic lows.

Shutterfly down

Shutterfly’s 8½% senior secured notes due 2026 were lower in heavy volume.

The notes dropped more than 2½ points in intraday activity to trade as low as 55, a new historic low for the notes.

However, the notes pared their losses into the close and ended the day down ¾ point at 57 with the yield about 27 5/8%, a source said.

There was $10 million in reported volume.

Shutterfly’s junk bonds have been on a steady downtrend since December.

Telesat weakens

Telesat’s 5 5/8% senior notes due 2026 dropped more than 1 point in light volume on Wednesday, eliminating their gains from the previous session.

The notes broke below a 47-handle to close Wednesday in the 46¼ to 46¾ context, a source said.

The yield was about 29¾%.

The notes launched the New Year strong and closed the previous session wrapped around 47.

The securities have been channeling between 45 and 48 for the past three months after plummeting to their current level throughout 2022.

The notes were trading in the low 90s in January 2022.

CSC adds to gains

CSC Holdings’ junk bonds continued their uptrend after closing the previous year near their historic low.

CSC Holdings’ 5¾% senior notes due 2030 jumped another 1¼ points in heavy volume.

The notes were changing hands in the 59 to 59½ context with the yield about 15 3/8%, according to a market source.

The yield was about 15 3/8%.

The 4 5/8% senior notes due 2030 jumped 1½ points to a 57-handle.

They were trading in the 57 to 57½ context heading into the market close with the yield about 13 5/8%.

There was $12 million in reported volume.

The notes have been on a strong uptrend over the past two sessions after closing 2022 near a historic low.

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