DISH bonds take back some losses from sell-off; Bausch Health down; distressed soft

By Cristal Cody

Tupelo, Miss., May 10 – DISH Network Corp.’s paper took back some of the week’s losses on Wednesday with the company’s bonds up about 3/8 point to more than 3 points on over $41 million of secondary action.

The company’s short-dated tranche of 5 7/8% senior notes due Nov. 15, 2024 (B3/B-) climbed 3¼ points on $15 million of trading supply.

Stocks finished mixed on Wednesday following the release of April’s inflation data.

The S&P 500 index rose 0.45%, while the Dow Jones industrial average declined 0.09%.

Volatility was lower with the CBOE Volatility index down 4.35% at 16.94.

The iShares iBoxx High Yield Corporate Bond ETF gained 45 cents, or 0.61%, to $74.81.

The Labor Department reported Wednesday the Consumer Price Index rose a seasonally adjusted 0.4% in April after increasing 0.1% in March. Over the last 12 months, the index has climbed 4.9% before seasonal adjustment with shelter providing the largest of the increase.

May’s inflation data will be released on June 13.

Also Wednesday, Bausch Health Cos. Inc.’s 6 1/8% notes due 2027 (Caa1/CCC+) came under pressure in strong trading with the issue going out more than ¼ point lower.

DISH on the defensive

DISH’s 5 7/8% senior notes due Nov. 15, 2024 (B3/B-) rallied 3¼ points on $15 million of trading supply on Wednesday in the issuer’s most active issue seen trading over the session, a source reported.

The notes went out at 83¾ bid.

DISH’s bonds have seen heavy secondary action this week with $21 million of the short-dated notes changing hands on Tuesday after a sell-off followed the company’s first-quarter report release on Monday.

Some other issues also were better on Wednesday in lighter trading.

DISH DBS Corp.’s 7¾% senior notes due 2026 (B3/B-) improved about 1½ points to 51½ bid on $11.7 million of secondary volume.

DISH’s 5 1/8% senior notes due 2029 (B3/B-) capped the day off 1½ points better at 41¾ bid on about $6.5 million of trading.

The Englewood, Colo.-based satellite cable operator’s 5¼% notes due 2026 (Ba3/B) also traded 1¼ points higher at 74¾ bid by the day’s end on $5 million of secondary supply.

Bausch moves lower

Bausch Health’s 6 1/8% notes due 2027 (Caa1/CCC+) attracted heavy secondary interest on Wednesday with nearly $15 million of the bonds traded, a source said.

The bonds carried a 66 handle after declining more than ¼ point.

The notes were the company’s most active issue seen trading over the day.

Bausch reported in the prior week a first-quarter loss of $201 million versus a loss of $69 million in the same quarter a year ago.

The Laval, Quebec-based pharmaceutical company’s stock rose 1.54% to $5.95.

Distressed returns soft

S&P U.S. High Yield Corporate Distressed Bond index one-day returns remained in the negative range on Tuesday at minus 0.15%, though improved from minus 0.21% in the same session a week ago.

Month-to-date total returns were at minus 0.43% on Tuesday, wider than minus 0.2% a week earlier.

Year-to-date total returns declined to 6.87% on Tuesday versus 7.11% in the week-ago session.

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