QVC rallies on heavy volume; Qurate improves; DISH softens; bankrupt CineMedia bonds up

By Cristal Cody

Tupelo, Miss., April 13 – QVC Inc.’s bonds shot to the top of the most active junk and distressed issues trading on Thursday with the paper gaining about 3 points to more than 7 points.

The company’s 4 3/8% senior secured notes due 2028 (B2/B-/B+) rallied over 3 points on $23.9 million of volume on Thursday, a source said.

The bonds have been stronger this week and added about 2 points to more than 5 points in Wednesday’s session.

Parent Qurate Retail Inc.’s 8½% senior notes due 2029 (Caa2/CCC-) were quoted up 2½ points on Thursday.

The company’s credit default swap spreads came in nearly 400 basis points this week.

Qurate Retail announced Thursday that it made Forbes’ 2023 list of the country’s best large employers.

Elsewhere, DISH Network Corp.’s paper was mixed on Thursday on about $15 million of trading action, a source said.

DISH DBS Corp.’s 7 3/8% senior notes due 2028 (B3/B) were down about 1 point.

The company’s CDS spreads eased almost 60 bps this week.

Market tone was strong over the day with the stock indices all ending more than 1% higher. The S&P 500 index finished up 1.33%.

The iShares iBoxx High Yield Corporate Bond ETF rose 52 cents, or 0.7%, to $75.43.

The CBOE Volatility index retreated 6.3% to 17.89.

National CineMedia LLC’s 5 7/8% senior secured notes due 2028 (Ca/D) saw gains on Thursday after trading mostly flat following the issuer’s Chapter 11 bankruptcy filing this week.

National CineMedia’s notes picked up 2½ points on light volume.

The global corporate default total rose to 37 after 14 defaults in March, S&P Global Ratings said Thursday.

The rate is tied with 2016 for the highest year-to-date default tally since 2009, according to the report.

“Distressed exchanges are responsible for nearly half of the defaults so far in 2023 and are at their highest year-to-date level,” S&P said.

By sector, media and entertainment is leading defaults in 2023. The sector also led in March, with five defaults, according to the note.

QVC bonds trade heavily

QVC’s 4 3/8% senior secured notes due 2028 (B2/B-/B+) rallied over 3 points to a 55 bid handle on $23.9 million of volume on Thursday, a source said.

The notes went out Wednesday 3¼ points better.

QVC’s 4¾% senior secured notes due 2027 (B2/B-B+) jumped 7¼ points to head out at 55½ bid on $3.9 million of trading.

The company’s 4.45% senior secured first-lien notes due 2025 (B2/B-/B+) also rallied 6 points to around 77 bid on $4.8 million of supply during the session.

The issue traded 2 3/8 points better on Wednesday.

Parent Qurate Retail’s 8½% senior notes due 2029 (Caa2/CCC-) were quoted up 2½ points on Thursday at 30¼ bid.

The company’s CDS spreads came in 399 bps for the week ended Wednesday to 3,905 bps, according to a report from Moody’s Investors Service.

QVC is a subsidiary of the West Chester, Pa.-based home shopping network company.

DISH bonds decline

DISH DBS’ 7 3/8% senior notes due 2028 (B3/B) were trading off about 1 point at 54½ bid on $3.4 million of volume on Thursday, a source said.

The company’s CDS spreads also eased 59 bps over the past week ended Wednesday to 2,229 bps, according to a Moody’s report.

The Englewood, Colo.-based satellite cable operator’s stock was up 3.22% at $8.34.

National CineMedia improves

National CineMedia’s 5 7/8% senior secured notes due 2028 (/D) added 2½ points by the day’s end to head out at 32½ bid, a source said.

Trading was light on $3 million of volume.

The company’s paper stayed mostly unchanged Wednesday after it reported the Chapter 11 filing.

Moody’s withdrew its ratings on the issuer following the announcement.

The Centennial, Colo.-based cinema advertising company reported that it filed on Tuesday in the U.S. Bankruptcy Court for the Southern District of Texas with plans to emerge from bankruptcy with no debt.

Distressed returns up

S&P U.S. High Yield Corporate Distressed Bond index one-day returns climbed on Wednesday to 0.62% from 0.24% on Tuesday and 0.06% at the start of the week.

Month-to-date returns also were higher midweek at 0.76% versus 0.14% on Tuesday and minus 0.11% on Monday.

Year-to-date total returns moved up to 5.32% on Wednesday from 4.66% on Tuesday and 4.41% on Monday.

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