DISH shows gains; Virgin Media paper stronger; iHeartMedia, QVC mixed; Diebold declines

By Cristal Cody

Tupelo, Miss., June 1 – DISH Network Corp.’s paper saw a bit of a turnaround on Thursday with the notes up more than 1 point, while the company’s credit default swap spreads also showed improvement this week.

DISH DBS Corp.’s 7¾% senior notes due 2026 (B3/B-) were quoted going out up more than 1½ points on $10.5 million of secondary supply.

CDS spreads from both issuers tightened more than 250 basis points this week.

Trading action in Virgin Media Inc.’s 6 3/8% notes due 2028 (Caa3/CCC-) climbed on Thursday to make the distressed issue one of the day’s top traded junk bonds, a source said.

The issue added over 1½ points during the session and have gained about 15 points this week.

Bonds from iHeartMedia, Inc. improved, though the company’s CDS spreads widened a third consecutive week.

iHeartMedia’s 8 3/8% senior notes due 2027 (Caa1/B-) rose over 1¼ points on more than $12 million of trading supply.

Meanwhile, QVC Inc.’s bonds were mixed in mostly light trading on Thursday.

CDS spreads from QVC parent Qurate Retail Inc. tightened nearly 400 bps this week.

Stocks indices rallied across the board on Thursday and market volatility dropped following the House vote to raise the U.S. debt ceiling to avert a June debt default.

The S&P 500 index closed up 0.99%.

The iShares iBoxx High Yield Corporate Bond ETF rose 46 cents, or 0.46%, to $74.22.

The CBOE Volatility index dropped 11.87% to 15.81.

Looking at other distressed paper, Diebold Nixdorf Inc.’s bonds sank further after the company reported it filed an expected Chapter 11 bankruptcy filing.

The bonds started to crack ahead of the Memorial Day holiday and slid on Tuesday after the company reported plans to file the pre-packaged Chapter 11 bankruptcy filing.

Diebold Nixdorf’s 9 3/8% senior secured notes due 2025 (Caa2/CCC) went out down about 5 points on the day and more than 10 points lower since Tuesday.

DISH improves

DISH DBS’ 7¾% senior notes due 2026 (B3/B-) were quoted going out at 58¾ bid on Thursday, up more than 1½ points on $10.5 million of secondary supply, a source said.

DISH’s 5 1/8% senior notes due 2029 (B3/B) traded more than 5½ points better in mostly light trading over the session.

The notes went out with a 50 bid handle on about $2 million of volume.

DISH’s CDS spreads also saw improvement this week.

DISH DBS’ CDS spreads came in 284 bps to 2,513 bps for the week ended Wednesday, according to a Moody’s Investors Service report.

In addition, DISH Network’s CDS spreads firmed 251 bps over the past week to 2,236 bps.

The Englewood, Colo.-based satellite cable operator’s stock fell 2.33% to $6.28 on Thursday.

Virgin Media better

Virgin Media’s 6 3/8% notes due 2028 (Caa3/CCC-) added more than 1½ points by the close to head out at 30½ bid, a source said.

Trading was strong with $16.5 million of paper changing hands on Thursday.

The bonds have climbed about 15 points this week after rallying 13½ points on Tuesday to 28½ bid.

Virgin Media is a Reading, U.K.-based telecommunications company.

iHeartMedia notes up

iHeartCommunications, Inc.’s 8 3/8% senior notes due 2027 (Caa1/B-) traded more than 1¼ points better at the 57½ bid area on more than $12 million of supply, a source said.

The 5¼% senior secured notes due 2027 (B1/BB-) were 1 point better on a 71 bid handle on about $4 million of volume on Thursday.

iHeartCommunications’ CDS spreads were 113 bps softer for the week ended Wednesday at 2,292 bps, Moody’s said.

CDS spreads from the company widened 180 bps in the previous week and 229 bps in the week prior.

iHeartMedia reported in May that it repurchased $20 million of the 8 3/8% notes at a discount to par for $15.4 million in cash.

The San Antonio-based media broadcasting company also reported heavy first-quarter losses.

QVC, Qurate mixed

QVC’s paper was mixed on Thursday with the 4 3/8% senior secured notes due 2028 (B2/B-) up 1¼ points at 59¼ bid on over $4 million of activity, a source said.

In thin trading over the session, QVC’s 5.45% senior secured first-lien notes due 2034 (B2/B-) shed about 4¼ points to a 48 bid handle.

Meanwhile, CDS spreads from parent Qurate Retail, formerly known as Liberty Interactive LLC, tightened 388 bps over the week ended Wednesday to 2,770 bps, Moody’s said.

The West Chester, Pa.-based company reported in late May it divested subsidiary Zulily and will focus on its core video commerce assets, which also include HSN.

Diebold Nixdorf lower

Diebold Nixdorf’s 9 3/8% senior secured notes due 2025 (Caa2/CCC) went out down about 5 points at 16 bid on Thursday following the Chapter 11 filing, a source said.

Trading was on the light side with $2.8 million of volume reported.

The issue was quoted Tuesday at 28 bid and had traded in the high 30s in the prior week.

The Hudson, Ohio-based financial and retail technology company’s bankruptcy filing comes as Diebold Nixdorf was facing a June debt payment after amending its credit facility in March to add a new $55 million first-in-last-out term loan tranche.

Diebold Nixdorf said in Tuesday’s release that it entered into a restructuring agreement with key financial stakeholders for a comprehensive debt restructuring transaction that will wipe out common stockholders.

May distressed returns soft

S&P U.S. High Yield Corporate Distressed Bond index one-day returns dropped to minus 0.55% on Wednesday from 0.55% at the start of the short holiday week.

May total returns finished Wednesday at minus 0.63%, down from minus 0.09% on Tuesday.

Monthly returns have slid from the start of the year when January saw 7.99% of distressed returns.

April bond index returns were 2.68%, March month-to-date returns were minus 4.2% and February returns were 1.03%.

Year-to-date total returns declined on Wednesday to 6.64% from 7.23% in the prior session.

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