CSC paper mixed; Rite Aid soft post earnings; DISH mixed; Embarq, Level 3 mostly up

By Cristal Cody

Tupelo, Miss., June 29 – Altice USA, Inc. subsidiary CSC Holdings, LLC’s paper traded heavily in the distressed market on Thursday.

The 5¾% senior notes due 2030 (Caa1/CCC+) fell about 1 point on $17.13 million of secondary action as the most active distressed issue seen, a source said.

CSC’s credit default swap spreads widened more than 100 basis points this week.

Rite Aid Corp.’s 8% senior secured notes due 2026 (Caa3/CCC-/CCC) moved ¾ point lower after the company posted weak quarterly earnings results.

Rite Aid’s CDS gapped out more than 2,000 bps this week and neared the 10,000 bps level by Wednesday.

Stocks mostly gained over the session.

The S&P 500 index was up 0.45%, while the Nasdaq finished flat.

The iShares iBoxx High Yield Corporate Bond ETF declined 20 cents, or 0.27%, to $74.71.

Market volatility was slightly higher on the day.

The CBOE Volatility index rose 0.82% to 13.54.

DISH Network Corp.’s bonds were mostly flat to under 1 point better over the session.

The 5 7/8% senior notes due 2024 (B3/B-) traded ½ point higher going into the close.

In other distressed trading, Embarq Corp.’s 7.995% notes due 2036 (Caa2/CCC) gained 1¾ points to head out at 60¼ bid, a source said.

Trading was steady with $3.5 million of secondary volume.

Also Thursday, notes from Lumen Technologies, Inc. subsidiary Level 3 Financing, Inc. were unchanged to ¼ point better.

CSC active

Altice USA subsidiary CSC Holdings’ notes were mostly soft on Thursday, a source said.

CSC’s 5¾% senior notes due 2030 (Caa1/CCC+) fell about 1 point to the 46½ bid area on $17.13 million of secondary action on Thursday, the most active distressed issue seen trading.

CSC’s 4 5/8% senior notes due 2030 (Caa1/CCC+) went out flat at 44¾ bid on more than $9 million of paper changing hands.

The company’s CDS spreads eased 140 bps to 2,352 bps for the past week ended Wednesday, according to a Moody’s Investors Service report.

Parent company Altice’s stock (NYSE: ATUS) climbed 7.69% to $2.94 on Thursday.

The New York-based broadband communications provider announced on Wednesday that its company, Optimum, launched a new 100% fiber internet network in west Texas.

Rite Aid softens

Rite Aid’s 8% senior secured notes due 2026 (Caa3/CCC-/B) gave back ¾ point by the session’s wrap, a market source said.

The notes were quoted at 48¾ bid.

Rite Aid’s CDS spreads widened 2,151 bps over the past week ended Wednesday to 9,489 bps, Moody’s said.

On Thursday, Rite Aid reported its fiscal 2024 first-quarter results, including that revenue declined to $5.65 billion from $6.01 billion a year ago.

Quarterly losses grew to $306.7 million, or $5.56 a share, from $110.19 million, or $2.03 per share, in the same quarter last year.

The company said it is reducing its adjusted EBITDA guidance for fiscal 2024 by $10 million to a range between $330 million and $360 million. Rite Aid projects a fiscal year net loss of $650 million to $680 million.

The Camp Hill, Pa.-based drugstore chain’s stock (NYSE: RAD) was little changed on the day. Shares rose 1 cent, or 0.66%, to $1.53.

DISH mixed

DISH’s 5 7/8% senior notes due 2024 (B3/B-) traded ½ point better going into the close at 87½ bid, a source said.

Secondary action was steady on $8 million of volume.

The notes were about ¾ point higher on the week.

DISH DBS Corp.’s 7¾% senior notes due 2026 (B3/B-) were active but mostly flat on the day at 60½ bid on $5.5 million of trading on Thursday.

The issue was about 1¼ points better this week.

DISH’s 5 1/8% senior notes due 2029 (B3/B-) also traded up 7/8 point over the day to 46 1/8 bid.

Secondary supply totaled $4.9 million.

CDS spreads for both DISH Network and DISH DBS widened this week.

DISH DBS’ CDS spreads softened 100 bps to 2,475 bps for the week ended Wednesday, Moody’s said.

DISH Network’s CDS spreads eased 67 bps to 2,162 bps.

The Englewood, Colo.-based satellite cable operator’s stock (Nasdaq: DISH) closed up 1.36% at $6.69.

Level 3 mixed

Lumen subsidiary Level 3 Financing’s 4 5/8% senior notes due 2027 (B1/B) rose ¼ point to 69½ bid on $5 million of volume on Thursday, a source said.

Level 3’s 4¼% senior notes due 2028 (B1/B) were flat at 64¼ bid on $3.9 million of trading.

Lumen’s CDS spreads widened 86 bps for the week ended Wednesday to 2,310 bps, according to Moody’s.

Shares (NYSE: LUMN) from the Denver-based telecommunications company finished Thursday up 0.92% at $2.20.

Distressed returns up

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns improved midweek to 0.36%, up from 0.24% on Tuesday and minus 0.17% on Monday.

Month-to-date total returns rose to 4.13%, compared to 3.76% on Tuesday and 3.51% at the start of the week.

Year-to-date distressed total returns climbed to 11.05% from 10.66% on Tuesday and 10.39% on Monday.

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