iHeartMedia bonds ‘sloppy,’ CDS ease; pre-holiday trading thin; Diebold paper soft

By Cristal Cody

Tupelo, Miss., May 26 – Market action slowed significantly on Friday ahead of the Memorial Day weekend, though some distressed issues saw active trading over the short session.

iHeartMedia, Inc.’s bonds “have been pretty sloppy,” a source said Friday. “They’ve been going down for sure.”

iHeartMedia’s 6 3/8% senior secured notes due 2026 (B2/BB-) went out 1 point lower from the start of the week.

The broadcasting company’s credit default swap spreads also widened 180 basis points this week after easing 229 bps in the prior week.

Stocks gained over the short session after declining most of the week with the Congressional impasse in reaching a solution ahead of a June U.S. debt default deadline weighing on markets.

The Nasdaq rallied 2.19%.

The iShares iBoxx High Yield Corporate Bond ETF rose 45 cents, or 0.61%, to $74.02.

The CBOE Volatility index declined a second day and was down 6.32% by the close at 17.93.

Secondary trading, though, overall was thin on Friday ahead of the early market close.

“It was very quiet,” a source said.

Diebold Nixdorf Inc.’s notes went out more than 5 points lower on the week, a source said.

Diebold Nixdorf’s 8½% senior notes due 2024 (Ca/CC) were slightly better after dropping more than 3¾ points on Thursday but remained weak ahead of a June debt payment.

“It’s really cracked the last two days,” the source said.

iHeartMedia soft on week

iHeartMedia’s 6 3/8% senior secured notes due 2026 (B2/BB-) went out Friday at 75½ bid, 76½ offered, a source said.

On Monday, the notes traded at 76½ bid, 77½ offered.

iHeartMedia’s CDS spreads eased 180 bps to 2,179 bps over the past week ended Wednesday after moving out 229 bps in the prior week, according to a Moody’s Investors Service report.

The San Antonio-based media broadcasting company on May 2 reported heavy first-quarter losses.

Diebold Nixdorf pressured

Diebold Nixdorf’s 8½% senior notes due 2024 (Ca/CC) traded around 5 bid with accrued interest on Friday, down considerably from where the issue was seen Monday at 11 bid, 13 offered, a source said.

The notes were quoted Thursday more than 3¾ points lower at 4 1/8 bid.

Diebold Nixdorf’s exchange offer for the 8½% notes was extended in the prior week to June 5.

The company faces a debt payment in June, sources reported.

In March, Diebold Nixdorf amended its credit facility to add a new $55 million first-in last-out term loan tranche due in June, according to a Fitch Ratings report.

The Hudson, Ohio-based financial and retail technology company conducted a distressed exchange in December.

Distressed index higher

S&P U.S. High Yield Corporate Distressed Bond index one-day returns moved back into positive territory on Thursday after Wednesday’s slide.

One-day returns were 0.38%, up from minus ¾% on Wednesday, 0.17% on Tuesday and 0.14% on Monday.

Month-to-date total return losses narrowed to minus 0.55% versus minus 0.93% on Wednesday, minus 0.18% on Tuesday and minus 0.35% in the first session of the week.

Year-to-date total returns were 6.73% on Thursday, 6.33% on Wednesday, 7.13% on Tuesday and 6.95% on Monday.

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