DISH paper extends secondary gains; Venator up after Chapter 11 filing; defaults climb

By Cristal Cody

Tupelo, Miss., May 16 – DISH Network Corp.’s paper continued to climb on Tuesday in heavy secondary supply with some of the bonds among the most active distressed paper during the session.

DISH’s bonds were seen anywhere from about ¼ point to about 1½ points better.

The 7¾% senior notes due 2026 (B3/B-) have gained nearly 3 points so far this week and were yielding close to 31%.

Venator Materials plc’s bonds were higher in light distressed trading following the company’s Chapter 11 bankruptcy filing.

Market tone sank on Tuesday under the weight of continued Congressional talks to avoid a U.S. debt default and poor earnings results from heavyweight names such as Home Depot Inc.

The S&P 500 index fell 0.64%.

The iShares iBoxx High Yield Corporate Bond ETF declined 52 cents, or 0.7%, to $73.88.

The CBOE Volatility index rose 5.08% by the close to 17.99.

Global defaults increased to 50 as of April 30 after adding 13 defaults in the prior month, S&P Global Ratings reported on Tuesday.

“The tally is more than 75% higher than the same period in 2022 and 25% higher than the 10-year average,” S&P said.

Globally, Latin America saw four defaults in April and has provided all of the emerging market defaults so far this year.

S&P expects the U.S. trailing-12-month speculative-grade corporate default rate to reach 4¼% by March 2024, up from 2½% in March 2023.

DISH bonds improve

DISH’s 5¼% notes due 2026 (Ba3/B) went out up ¼ point at 76¼ bid on Tuesday in heavy secondary action that topped $18 million, a source said.

DISH DBS Corp.’s 7¾% senior notes due 2026 (B3/B-) also were one of the most active distressed issues moving during the session.

The notes added nearly 1½ points on more than $10 million of volume.

The issue was quoted at 55½ bid and yielding 30.98%.

DISH’s 5¾% notes due 2028 (Ba3/B) climbed 1 1/8 points to 69¾ bid on Tuesday. Trading was steady with $8.7 million of paper changing hands.

The Englewood, Colo.-based satellite cable operator’s stock was down 1.37% at $6.48.

Venator trades up

Venator Materials’ bonds were trading higher on Tuesday in the distressed space following the company’s Chapter 11 bankruptcy filing, a source said.

The 9½% senior secured bonds due 2025 (Ca/CCC) gained 2 points in mostly light trading.

The issue was quoted at 60 bid on $2.25 million of volume.

Venator’s 5¾% senior notes due 2025 (C/CC) were quoted at 12¼ bid on Tuesday on $5 million of paper turning over.

Moody’s Investors Service downgraded the paper on Tuesday and said it will withdraw the ratings when the rated debt instruments are canceled.

Venator filed for Chapter 11 on Sunday.

The Wynyard, U.K.-based chemical products manufacturer announced on Monday that it will conduct a recapitalization plan through a pre-packaged Chapter 11 process in the United States.

Distressed returns weak

S&P U.S. High Yield Corporate Distressed Bond one-day returns were soft at the start of the week at minus 0.11%, down from minus 0.6% on Friday.

Month-to-date total returns widened to minus 0.52% on Monday versus minus 0.41% in the prior session.

Year-to-date total returns slipped to 6.77% as the week opened, compared to 6.89% on Friday and 7.53% on Thursday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.