DISH bonds continue to grab secondary focus; Level 3 paper mixed; Weekley Homes drops

By Cristal Cody

Tupelo, Miss., May 15 – Paper from DISH Network Corp. continued to dominate distressed secondary trading on Monday with the bonds up about ¼ point to 1½ points on the day.

DISH faces a class action shareholder lawsuit regarding outages in February.

On Monday, investor rights law firm Bernstein Liebhard LLP announced in a press release a reminder that the deadline to file a motion to serve as a lead plaintiff in a securities class action lawsuit against DISH is May 22.

Bonds from Lumen Technologies, Inc. subsidiary Level 3 Financing, Inc. were a wash on Monday with one tranche down ½ point and another issue up ½ point by the close.

Lumen’s notes also softened.

Market action was muted.

The iShares iBoxx High Yield Corporate Bond ETF fell 2 cents, or 0.03%, to $74.40.

The CBOE Volatility index rose 0.53% to 17.12.

In other distressed issues, Weekley Homes LLC’s 4 7/8% senior notes due 2028 (Caa1/BB-) sank 7 points to 62 bid, a source said.

Trading in the Houston-based home construction company’s notes was light at $2 million.

DISH moves up

DISH’s paper was one of the day’s gainers in the distressed secondary space, a source said.

The 5 1/8% senior notes due 2029 (B3/B-) rallied 1½ points to head out at 44½ bid. Trading in the issue was on the light side with $2.5 million of volume.

DISH DBS Corp.’s 7¾% senior notes due 2026 (B3/B-) traded 1¼ points better by the close to a quote of 54 bid on stronger supply totaling $4 million.

The 7 3/8% senior notes due 2028 (B3/B-) also were about 1¼ points better at the 48¼ bid range on $3.5 million of volume.

DISH’s 11¾% notes due 2027 (B3/B) were the Englewood, Colo.-based satellite cable operator’s most heavily traded tranche seen Monday with the issue up nearly ¼ point at a mid-90s handle on nearly $18 million of supply, the source said.

Level 3 paper mixed

Level 3 Financing’s 3 7/8% senior notes due 2029 (B1/B) shed ½ point by the day’s end, going out at 56¾ bid on $5 million of trading, a source said.

Meanwhile, the 4 5/8% senior notes due 2027 (B1/B) were up ½ point at 64¼ bid on $4.2 million of volume on Monday.

Parent Lumen Technologies’ 4% senior secured notes due 2027 (B3/BB-) slipped 1/8 point to 67 bid on $3 million of activity over the session.

Level 3, a subsidiary of Denver-based telecommunications company Lumen, conducted a distressed debt exchange in April.

Distressed index soft

The S&P U.S. High Yield Corporate Distressed Bond index finished softer on Friday.

One-day returns declined to minus 0.6% from 0.24% in the prior session.

Month-to-date total returns finished Friday soft at minus 0.41%.

Year-to-date total returns dropped to 6.89% from 7.53% on Thursday.

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