DISH bonds under pressure as market assesses refinancing risk; QVC gains continue

By Abigail W. Adams

Portland, Me., May 8 – The distressed debt space saw a quiet start to the week as the indecision returned to the market following the strong gains of the previous session.

The market was flat to slightly softer on Monday with a fresh inflation print on deck and Congress staring down a default as debt limit negotiations continue.

Few were making moves on Monday as indecision again weighed on risk appetites.

However, earnings-related news continued to drive trading activity.

DISH Network Corp.’s senior notes were in focus following earnings with the notes under pressure in heavy volume as the market questions its ability to address its looming maturities.

QVC Inc.’s senior notes continued their upward momentum after popping on Friday following better-than-expected earnings from its parent company.

DISH under pressure

DISH’s senior notes were under pressure in heavy volume on Monday with earnings doing little to alleviate the market’s concern regarding the credit.

DISH’s soon-to-mature 5 7/8% senior notes due Nov. 15, 2024 (B3/B-) sank 1 point to close the day at 80½, a source said.

The yield rose to 21 5/8%.

There was $37 million in reported volume.

DISH’s 7¾% senior notes due 2026 (B3/B-) sank 1 3/8 points to close the day at 51 3/8.

The yield rose to 34 1/8%.

There was $19 million in reported volume.

The 7 3/8% senior notes due 2028 (B3/B-) fell 1 point to close the day at 44 with the yield 29%.

There was $14 million in reported volume.

DISH’s earnings did little to alleviate investor concern about the satellite broadcaster whose capital structure has suffered substantial losses since a late February ransomware attack caused weeks-long service outages.

The attack was expected to result in a loss of subscribers and impact the company’s revenue.

DISH reported losing 552,000 subscribers in the first quarter versus the 357,000 expected.

Revenue was $3.96 billion versus the $4.06 billion expected.

The market is concerned about DISH’s ability to refinance its 2024 maturities, a source said.

QVC gains continue

QVC’s senior notes continued their upward momentum after popping on Friday following better-than-expected results from parent company Qurate Retail, Inc.

The soon-to-mature 4.85% senior secured notes due April 1, 2024 (B2/B-) added another 3/8 point to rise to a 93-handle.

The notes were changing hands in the 93¼ to 93¾ context in active trade, a source said.

The yield was about 12 5/8%.

QVC’s 4.45% senior secured notes due 2025 (B2/B-/B+) added 2 points to close the day at 84 with the yield about 15 1/8%.

QVC’s 4.85% notes and 4.45% notes jumped 6 points and 7 points last Friday after Qurate surprised the market with better-than-expected results.

The market had been expecting the worst from the struggling credit but the results were not as bad as expected, a source said.

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