AMC paper edges lower; Shutterfly bonds shoot up 8-plus points; Rite Aid notes improve

By Cristal Cody

Tupelo, Miss., May 23 – AMC Entertainment Holdings, Inc.’s paper saw some of the heaviest distressed secondary action on Tuesday after the movie theater owner announced discounted summer movie tickets.

The company’s bonds were trading about ¼ point to 3/8 point lower on more than $14 million of volume.

Meanwhile, Shutterfly, LLC’s 8½% senior secured notes due 2026 (B2/CCC) shot up 8½ points on Tuesday, though trading was thin.

The bonds have climbed about 13 points from a week ago when the company announced the launch of a debt exchange offer and consent solicitation.

Market tone softened over the session with stock indices down across the board as talks continued ahead of a potential U.S. debt default in June.

The S&P 500 index shed 1.12%.

The iShares iBoxx High Yield Corporate Bond ETF dropped 39 cents, or 0.52%, to $74.14.

The CBOE Volatility index increased 7.67% to 18.53 by the close.

In other distressed paper active on Tuesday, Rite Aid Corp.’s 8% senior secured notes due 2026 (Caa3/CCC-/CCC) picked up about 1½ points.

AMC notes soften

AMC Entertainment’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) declined ¼ point to 62 bid in the most active issue on $9 million of volume over Tuesday’s session, a source said.

AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) fell 3/8 point to 70 3/8 bid on $5.18 million of trading.

The company announced Tuesday it was reinstating a discounted summer family movie program last seen in 2019.

AMC is awaiting a court decision in the Delaware Court of Chancery regarding a settlement in a shareholder lawsuit brought by Allegheny County Employees’ Retirement System over the company’s issuance of preferred stock.

The Leawood, Kan.-based movie theater owner’s common stock closed down 1.76% at $5.03.

AMC’s preferred shares rose fell 1.23% to $1.60 on Tuesday.

Shutterfly rallies

Shutterfly’s 8½% senior secured notes due 2026 (B2/CCC) climbed 8½ points by the day’s end, a source said.

The notes were trading at 58 bid and yielding 28.85% on $1 million of volume.

The issue has rallied about 13 points from where it was quoted a week ago following Shutterfly’s May 16 announcement that it launched an offer to exchange the 8½% first-priority notes for new 9¾% first-priority senior secured notes due 2027 and new 8¾% second-priority senior secured cash/PIK notes due 2027 or first-lien term loans.

The exchange offer expires June 14.

The Redwood City, Calif.-based-commerce provider of personalized photo and design products is majority owned by investment funds managed by Apollo Global Management.

Rite Aid improves

Rite Aid’s 8% senior secured notes due 2026 (Caa3/CCC-/CCC) picked up about 1½ points to a quote of 54 bid by the close on Tuesday, a source said.

Trading was light on $1 million of volume.

The notes carried a 30.3% yield.

Rite Aid’s issue has been active over the last two sessions after moving Monday at 52 bid on $4 million of secondary action.

The Camp Hill, Pa.-based drugstore chain’s stock finished down 2.01% at $1.95.

Distressed returns higher

S&P U.S. High Yield Corporate Distressed Bond one-day returns started the week up at 0.14%, better than 0.11% on Friday and minus 0.11% in the same session a week ago.

Month-to-date total returns rose to minus 0.35% from minus 0.5% ahead of the weekend and minus 0.52% in the week-ago session.

Year-to-date total returns improved to 6.95% on Monday, compared to 6.79% on Friday and 6.77% the same day last week.

© 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.