DISH notes trade lower in heavy volume; QVC downtrend continued; AMC paper falls

By Abigail W. Adams

Portland, Me., March 7 – It was a heavy day in the distressed debt space after Federal Reserve chair Jerome Powell sank the market’s recently renewed risk-on sentiment with comments about larger-than-expected rate increases.

While the market tone was heavy with few buyers in the space, the S&P U.S. High Yield Corporate Distressed Bond index continued to log gains with the index up another 0.57%.

QVC Inc.’s senior notes remained in focus with the negative market sentiment pushing the notes, which have been on a strong downtrend since the previous week, lower.

DISH Network Corp.’s senior notes saw heavy volume with its short-duration notes off as much as 1 point despite a surge in the company’s stock.

AMC Entertainment Holdings, Inc.’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) also fell more than 1 point on a heavy day for the market.

QVC trends lower

QVC’s senior notes continued their strong downtrend on Tuesday with the negative sentiment in broader markets contributing to the selling in the name.

QVC’s 4 3/8% senior secured notes due 2028 (Ba3/B+) sank another ½ point to close the day at 49½, according to a market source.

The 4.45% senior secured notes due 2025 (Ba3/B+) were off another 1 point to close the day at 74¾.

Both tranches saw about $8 million in reported volume.

QVC’s capital structure has been under pressure since parent company Qurate reported disappointing earning the previous week.

DISH down

DISH’s senior notes were lower in heavy volume on Tuesday despite a surge in the company’s stock.

DISH’s short-duration 7¾% senior notes due 2026 (B3/B) took the biggest hit with the notes falling 1 point.

They closed the day at 76½ with the yield 17 3/8%, a source said.

There was $10.5 million in reported volume.

DISH’s 7 3/8% senior notes due 2028 fell ¼ point to close the day at 67½ with the yield 16 7/8%, a source said.

There was about $10 million in reported volume.

The 5 1/8% senior notes were active but largely unchanged at 58 7/8 with a yield of about 16 7/8%, a source said.

There was $8 million in reported volume.

DISH’s unsecured notes were lower despite a surge in the company’s stock, which shot up 9% in intraday activity before giving back some gains to close the day with a 4% gain.

The company’s stock may have been lifted on news of insider buying.

However, the credit remains under pressure after a ransomware attack the previous week caused widespread outages.

The company also has a heavy debt load and refinancing concerns may have triggered selling in the name, a source said.

AMC lower

AMC’s 7½% senior secured first-lien notes due 2029 were lower in active trade on a heavy day for the market.

The 7½% notes were off 1 point to close the day at 61½, according to a market source.

The yield rose to 18½%.

There was $5 million in reported volume.

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