AMC bonds push higher; Diamond Sports moves up; Bausch Health lower; Adani volatile

By Cristal Cody

Tupelo, Miss., Jan. 31 – The distressed debt secondary market stayed busy on Tuesday with several names seen trading over the session.

AMC Entertainment Holdings, Inc.’s notes were more than 1 point to about 2 3/8 points higher.

The 7½% senior secured first-lien notes due 2029 (Caa1/B-) went out better than 1½ points on nearly $12 million of paper traded.

Diamond Sports Group LLC’s secured and unsecured notes rose about ¼ point to ½ point after declining 1/8 point on Monday.

Market tone reversed on Tuesday with stocks stronger. The S&P 500 index closed up 1.46%.

The iShares iBoxx High Yield Corporate Bond ETF added 60 cents, or 0.79%, to $76.34.

The CBOE Volatility index gave back 2.71% to $19.40 by the afternoon.

Bausch Health Cos. Inc.’s paper mostly softened by about 1 point to more than 2 points on Tuesday.

Meanwhile, Adani Green Energy Ltd.’s notes have been volatile as the India-based renewable energy company faces fallout over accusations of fraud against parent company Adani Group by U.S.-based research firm Hindenburg Research, a source reported.

The research group on Jan. 24 published its findings of a two-year investigation into the company.

In the dollar market, Adani Green Energy’s 4 3/8% senior secured notes due 2024 (Ba3) dropped from trading with a handle in the 90s ahead of the report’s release to the 70s by Tuesday, the source said.

The bonds were trading better than par a year ago.

Adani’s issue went out Tuesday up 7½ points at 79 bid on $3.5 million of volume, the source said.

AMC bonds higher

AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) were moving 1½ points higher at a 58 handle on nearly $12 million of volume on Tuesday, a source said.

The 10% senior secured second-lien notes due 2026 (Caa3/CC) traded 2 3/8 points better at 50½ bid on $4.6 million of secondary supply.

The company announced in December plans to exchange $100 million of its second-lien notes due 2026 with debt holder Antara for preferred equity.

The Leawood, Kan.-based movie theater owner and gold and silver mine investor’s stock also closed out the day 6.79% higher at $5.35.

Diamond Sports edges up

Diamond Sports’ 5 3/8% senior secured notes due 2026 (Caa3/CCC-) were quoted moving about ½ point higher to a 7 handle on Tuesday on $6.5 million of secondary trading, a source said.

The bonds were down 1/8 point on Monday at 6 7/8 bid on $7.4 million of volume.

Diamond Sports’ 6 5/8% senior notes due 2027 (Ca/C) improved ¼ point by the day’s end on $5 million of paper traded. The bonds were quoted at 2¼ bid.

The issue softened 1/8 point on Monday to trade at 2 bid on $6.25 million of supply.

In 2022, parent Sinclair Broadcast Group Inc. deconsolidated the Chesapeake, Va.-based sports broadcast group from its financial statements.

Bausch notes soften

Bausch’s senior secured paper (Caa1/B-/B) stayed under pressure on Tuesday, a market source said.

The 11% senior secured first-lien notes due 2028 traded down more than 2¼ points to a 77 handle.

Activity was light on $1.3 million of volume.

Bausch’s 5½% senior secured notes due 2025 (Caa1/B-/B) shed 1¼ points to trade around the 84¾ bid range on stronger activity that totaled $9.3 million.

The 4 7/8% senior secured notes due 2028 (Caa1/B-/B) traded down over 1 point to 65 bid by the day’s end on $7 million of secondary activity.

Also, Bausch’s 5¾% senior notes due 2027 (Caa1/B-/B) dropped 1 point to a quote of 68 bid on $1.6 million of trading during the session.

The Laval, Quebec-based pharmaceutical company completed a distressed debt exchange in 2022.

Distressed returns up

S&P U.S. High Yield Corporate Distressed Bond index one-day returns rose to 0.12% on Monday, up from 0.09% on Friday but down from the 0.29% return in the same session a week ago.

Month-, quarter- and year-to-date total returns on Monday rose past 8% to 8.03%.

Returns for January, the quarter and year to date on Friday were 7.9% and were 7.31% in the week-ago session.

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