DISH bonds little changed; Bausch Health mostly holds onto gains; iHeartMedia mixed

By Cristal Cody

Tupelo, Miss., May 19 – Distressed secondary trading action slowed on Friday with DISH Network Corp. and Bausch Health Cos. Inc. among the most active names.

DISH’s paper was the most active distressed name seen moving Friday afternoon, a source said.

The company’s bonds were heading out flat to modestly weaker.

Bausch Health’s notes mostly held onto the week’s gains and were seen flat to about ¼ point higher on Friday.

Bausch’s 11% senior secured notes due 2028 (Caa1/CCC+/B) went out mostly unchanged on more than $10 million of trading.

Markets were weaker on Friday as volatility took hold heading into the weekend.

Stocks indices were softer across the board. The Nasdaq declined 0.24%.

The iShares iBoxx High Yield Corporate Bond ETF added 7 cents, or 0.1%, to $74.19.

The CBOE Volatility index was 3.86% higher at 16.67.

Also Friday, iHeartMedia, Inc.’s bonds were changing hands on more than $12 million of secondary action.

The 6 3/8% senior secured notes due 2026 (B2/BB-) declined ½ point.

Over the week, three defaults involving $1.3 billion of bonds and $5 billion of loans were registered, according to a BofA Securities Inc. note on Friday.

“Six bond defaults in May already,” the note said.

The year-to-date recovery stands at 21 points in bonds and 34 points in loans, according to the report.

Junk health and cable/telecom names are among the top contributors to the deep distressed market, BofA said.

DISH slightly weaker

DISH’s 5¼% notes due 2026 (Ba3/B) slipped 1/8 point to trade at 76½ bid during the session, a source said.

The notes were the company’s most active issue on Friday on $13.5 million of volume.

DISH DBS Corp.’s 7¾% senior notes due 2026 (B3/B-) were quoted mostly flat at 55 bid on $6 million of activity.

The Englewood, Colo.-based satellite cable operator’s 5¾% notes due 2028 (Ba3/B) traded down 1/8 point to 69½ bid on about $4 million of volume during the session.

Bausch mostly steady

Bausch’s 11% senior secured notes due 2028 (Caa1/CCC+/B) went out mostly flat at 77¾ bid on Friday, a source said.

The bonds were the issuer’s most active tranche on more than $10 million of secondary volume.

The issue has gained about 2¼ points since Wednesday.

Bausch’s 4 7/8% senior secured notes due 2028 (Caa1/CCC+/B) rose 3/8 point on Friday to 63 1/8 bid on $4 million of supply.

The issue softened ½ point on Thursday after improving 3 points on Wednesday.

Bausch announced Wednesday a favorable court ruling from the U.S. District Court of Delaware in a lawsuit against Norwich Pharmaceuticals, Inc.

The Laval, Quebec-based pharmaceutical company’s stock rallied more than 35% on Wednesday and Thursday before giving back 3.04% on Friday to close at $8.30.

iHeartMedia flat to weaker

iHeartMedia’s 5¼% senior secured notes due 2027 (B1/BB-) were steady on Friday at 71¼ bid on $4.5 million of trading action, a source said.

The company’s 8 3/8% senior notes due 2027 (Caa1/B-) also were flat at 57½ bid on stronger volume totaling $6.8 million.

The 6 3/8% senior secured notes due 2026 (B1/BB-) declined ½ point to 77 bid on volume of under $3 million.

iHeartMedia’s credit default swap spreads widened more than 200 basis points over the week.

The San Antonio-based media broadcasting company reported earlier in May heavy first-quarter losses.

Distressed returns up

S&P U.S. High Yield Corporate Distressed Bond one-day returns improved on Thursday to 0.07% after staying negative in the front half of the week with returns of minus 0.07% on Wednesday, minus 0.09% on Tuesday and minus 0.11% on Monday.

Month-to-date total returns were at minus 0.61% on Thursday, minus 0.68% on Wednesday, minus 0.61% on Tuesday and minus 0.52% at the week’s start.

Year-to-date total returns rose to 6.67% on Thursday from 6.6% on Wednesday, 6.67% on Tuesday and 6.77% on Monday.

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