DISH bonds extend rally; Carvana notes better on day, week; Bed Bath & Beyond softens

By Cristal Cody

Tupelo, Miss., March 30 – Paper from DISH Network Corp. and Carvana Co. made up the bulk of distressed secondary action on Thursday, according to market sources.

DISH’s notes, which added about 1½ points to 4 points on Wednesday, went out Thursday 1¼ points to more than 3 points better in strong trading action.

The 5 7/8% senior notes due 2024 (B3/B) climbed 3 points on $23.5 million of volume.

Carvana’s notes went out about 1½ points to more than 3 points higher on Thursday.

The company’s 10¼% senior notes due 2030 (Ca/C) were trading 6 points better from a week ago.

The day closed with a mostly stronger market tone and new midstream bond offerings in the high-grade and junk markets on Thursday.

The S&P 500 index finished 0.57% higher.

The iShares iBoxx High Yield Corporate Bond ETF improved 44 cents, or 0.59%, to $74.74.

The CBOE Volatility index was down 0.58% on the day at 19.01.

In distressed retail paper, Bed Bath & Beyond Inc.’s notes moved lower in thin trading on Thursday after the company announced new transactions to help stave off a bankruptcy filing, a source said.

The Union, N.J.-based home products retailer’s 3.749% senior notes due 2024 were trading at 15 bid, down about 2 points from the prior session.

The company’s stock sank 26.23% to 59 cents.

DISH bonds up

DISH’s paper traded about 1¼ points to more than 3 points better in strong trading action on Thursday, a market source said.

DISH’s 5 7/8% senior notes due 2024 (B3/B) climbed 3 points to 87¾ bid on $23.5 million of volume.

In the prior session, the notes rallied 4 points on $27.95 million of secondary activity.

The 5¼% notes due 2026 (Ba3/B+) traded over 2 points better near the 78 bid area on $16.3 million of supply on Thursday.

The bonds went out Wednesday up nearly 1½ points on $31 million of trading.

DISH’s 7¾% notes due 2026 (B3/B) also improved about 3½ points on Thursday to a 65 bid handle on over $14 million of volume.

The Englewood, Colo.-based satellite cable operator’s stock closed down about 1% at $9.01.

Carvana higher

Carvana’s 5 7/8% senior notes due 2028 (Ca/C) were up 1½ points at a 41 bid handle on more than $15 million of trading on Thursday, a source said.

The company’s 10¼% senior notes due 2030 (Ca/C) rallied 3 3/8 points to 58 bid on $6.25 million of trading.

The issue was up 6 points from a week ago.

Carvana’s paper was under pressure earlier in the month after the company launched an exchange offer for up to $1 billion of its $5.72 billion senior notes outstanding.

The Tempe, Ariz.-based online car retailer announced on March 22 an exchange offer for five tranches of notes for up to $1 billion of new 9%/12% cash/PIK toggle senior secured second-lien notes due 2028.

The exchange offer expires on April 19.

Carvana’s stock rallied 12.2% to close Thursday at $8.83.

Distressed returns improve

S&P U.S. High Yield Corporate Distressed Bond index one-day returns improved midweek to 0.48% from minus 0.44% on Tuesday and 0.37% on Monday.

Month-to-date returns rose to minus 5.49% versus minus 5.94% on Tuesday and minus 5.53% on Monday.

Quarterly and year-to-date total returns increased to 3.12% on Wednesday, compared to 2.62% on Tuesday and 3.07% at the start of the week.

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