DISH paper improves; AMC secured notes steady in active market; Altice France declines

By Cristal Cody

Tupelo, Miss., July 28 – DISH Network Corp.’s paper saw a turnaround on Friday after midweek losses with the company’s bonds the most active distressed issues traded over the session, a source said.

DISH’s bonds traded over ½ point to more than 1 point higher in strong trading totaling more than $53 million.

The 5 1/8% senior notes due 2029 (Caa2/B-) climbed more than 1 point on over $21 million of volume.

DISH’s bonds dropped about ¼ point to nearly 1½ points on more than $113 million of paper traded on Wednesday following a downgrade from Moody’s Investors Service.

“DISH was a net gainer along with cable on the week but softened on Weds with Moody's downgrade to CCC,” according to a BofA Securities research note on Friday.

AMC Entertainment Holdings, Inc.’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) were changing hands on Friday on nearly $10 million of trading, though the issue was flat over the afternoon, a source said.

The bonds gave back most of the gains made at the start of the week after a court ruled against its lawsuit settlement plans but were going out more than 5 points better on the week.

Market tone turned around on Friday with stock indices all higher after declining in the prior session following the Federal Reserve’s midweek rate hike. The S&P 500 index closed up 0.99%, while the Nasdaq improved 1.9%.

The iShares iBoxx High Yield Corporate Bond ETF added 43 cents, or 0.57%, to $75.32.

Volatility declined. The CBOE Volatility index fell 7.49% to 13.33.

Earnings reports remained in focus with the majority reported so far beating market expectations, according to a Confluence Investment Management note on Friday.

“With 243 companies having reported so far, S&P 500 earnings for Q2 are running at $52.60 per share, compared to estimates of $53.55 (a decline of 6.8% from Q2 2022),” the report said. “Of the companies that have reported thus far, 81.9% have exceeded expectations while 12.3% have fallen short of expectations.”

Meanwhile, Altice France Holding SA’s 10½% senior notes due 2027 (Caa2/CCC) traded down 7/8 point to a low 40s handle on $8 million of volume on Friday.

DISH trades up

DISH DBS Corp.’s bonds traded over ½ point to more than 1 point higher on Friday in strong trading totaling more than $53 million, a source reported.

The 5 1/8% senior notes due 2029 (Caa2/B-) traded late afternoon more than 1 point higher at 50¼ bid on $21.6 million of paper changing hands.

The notes were seen on Wednesday 1¼ points lower at 49 bid on $12.9 million of trading.

DISH’s 7 3/8% senior notes due 2028 (Caa2/B-) traded over ½ point higher on Friday with a 55 bid handle on $14.26 million of volume.

The company’s 7¾% senior notes due 2026 (Caa2/B-) also added 1¼ points during the session to a quote of 63¾ bid. Trading topped $9 million.

The issue fell around ½ point to 63 bid on $28.7 million of trading on Wednesday.

Moody’s on Wednesday downgraded the company and noted the potential for a distressed debt exchange.

DISH announced Wednesday that its unit Boost Infinite will partner with Amazon.com Inc. to offer Prime members wireless talk, text and data services.

The Englewood, Colo.-based satellite cable operator’s stock (Nasdaq: DISH) climbed 11.6% on Friday to $7.79.

AMC notes steady

AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) traded flat on Friday at 69 bid in active secondary supply totaling $9.9 million, a market source said.

The notes were going out more than 5 points better on the week.

On Monday, the issue rallied 5½ points to 68½ bid and were seen Tuesday at 70¾ bid.

AMC reported at the start of the week that it received notice on July 21 the Delaware Court of Chancery had denied its settlement plans in a shareholder lawsuit brought by Allegheny County Employees’ Retirement System over its issuance of preferred stock.

The company filed an addendum to the stipulation on Saturday to address the issues raised by the court and requested approval with the revised release.

On Sunday, AMC chief executive officer Adam Aron issued an open letter to investors and said it was important the company be able to raise fresh equity since it faces a risk of running out of cash in 2024 or 2025.

AMC plans to release its second-quarter results after the market closes on Aug. 8.

The Leawood, Kan.-based movie theater owner’s common stock (NYSE: AMC) closed Friday up 2.65% at $4.64.

AMC’s preferred stock (NYSE: APE) was down 3.23% to $1.80.

Altice softens

Altice France Holding’s 10½% senior notes due 2027 (Caa2/CCC) traded 7/8 point lower at 42½ bid on $8 million of volume on Friday, a source said.

The notes were yielding 42%.

Altice has been in the news in July with Altice Group co-founder Armando Pereira facing tax fraud and money laundering charges and the resignation of Altice USA Inc. chairman Alexandre Fonseca from the board. Also this week, New York-based broadband communications provider Altice USA was reported to be considering a sale of its Cheddar News network.

Altice USA’s stock (NYSE: ATUS) closed Friday up 5.17% at $3.46.

Distressed index higher

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns on Thursday were 0.12%, compared to 0.04% on Wednesday and 0.18% on Tuesday and Monday.

Month-to-date total returns improved to 2.51% on Thursday from 2.39% on Wednesday, 2.34% on Tuesday and 2.16% at the week’s start.

Year-to-date distressed total returns climbed to 14.43% on Thursday from 14.29% midweek, 14.24% on Tuesday and 14.04% on Monday.

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