DISH bonds jump in heavy trading; WeWork paper sinks; WW notes up; Diebold Nixdorf soft

By Cristal Cody

Tupelo, Miss., Aug. 9 – Distressed trading slowed Wednesday in light summer activity, while DISH Network Corp. paper attracted the bulk of trading in the junk space with more than $217 million of paper traded, sources reported.

DISH’s notes were seen anywhere from flat to 7½ points better on the day after a buying spree erupted Tuesday on news the company will merge with EchoStar in all-stock deal.

DISH’s 5¼% senior secured notes due 2026 (B2/B) rallied 5 points on $19 million of volume.

The 5 1/8% senior notes due 2029 (Caa2/B-) rose 4½ points on $18.75 million of trading.

Otherwise, the market was “pretty quiet” Wednesday, a source said. “The thick of summer now.”

WeWork Inc.’s notes treaded deep into the distressed space on about $7.8 million of trading after diving from Tuesday’s levels.

The 7 7/8% senior notes due 2025 were quoted in the single digits.

The company on Tuesday reported doubts about its ability to continue as a going concern.

WW International Inc.’s bonds have improved slightly since the company announced last week a lower revenue forecast.

WW’s 4½% senior secured notes due 2029 (B3/B) were up about 1½ points from Friday.

Stocks softened ahead of the July Consumer Price Index inflation data report due Thursday.

The Nasdaq closed down 1.17%.

The CBOE Volatility Index was mostly flat with the index off 0.19% at 15.96.

The iShares iBoxx High Yield Corporate Bond ETF inched up 1 cent, or 0.01%, to $74.96.

Meanwhile, some of Diebold Nixdorf Inc.’s notes remained in the single digits Wednesday after the company announced plans to exit Chapter 11 bankruptcy by the week’s end.

DISH mostly higher

DISH’s notes were seen anywhere from flat to 7½ points better on the day, sources reported Wednesday.

DISH DBS Corp.’s 5¼% senior secured notes due 2026 (B2/B) rallied 5 points to 61 bid on $19 million of volume.

“They’re pretty active,” a source said. “With the merger news from yesterday, they’re up a little bit.”

The 5 1/8% senior notes due 2029 (Caa2/B-) rose 4½ points to 60½ bid on $18.75 million of trading.

DISH reported Tuesday it plans to merge with EchoStar.

In July, Moody’s Investors Service downgraded the company and noted the potential for a distressed debt exchange, while DISH announced during the month a partnership with Amazon.com, Inc. to offer wireless talk, text and data services.

The Englewood, Colo.-based satellite cable operator’s stock (Nasdaq: DISH) fell 1.19% to $8.27.

WeWork drops

WeWork paper was weak Wednesday on about $7.8 million of trading, sources said.

“It wasn’t great to begin with,” a trader said. “Doesn’t seem people giving them much hope.”

The 7 7/8% senior notes due 2025 (CCC/C) were quoted at 6 bid, 8 offered Wednesday.

The notes were 31 bid, 33 offered on Tuesday before the company’s second-quarter earnings announcement.

The 7 7/8% senior notes due 2025 also were seen Wednesday at 11, 11¼ on about $6 million of volume.

WeWork’s 15% first-lien senior secured notes due 2027 (B-/CCC) traded at 52 bid, 54 offered Wednesday, down from 77 bid, 78 offered on Tuesday.

The notes were also seen at 54½ bid on $2 million of supply during the session.

In addition, WeWork’s 11% second-lien senior secured notes due 2027 (B-/C) declined to 15 bid, 17 offered on Wednesday.

The notes traded at 32½ bid, 34½ offered Tuesday.

The New York-based office share company on Tuesday reported higher revenue and an improvement in its earnings losses over the second quarter but said substantial doubt exists about its ability to continue as a going concern.

WeWork’s stock (NYSE: WE) sank 38.56% to 12 cents by the close Wednesday.

WW notes dip

WW International’s 4½% senior secured notes due 2029 (B3/B) were quoted going out Wednesday mostly unchanged at 66½ bid, 67½ offered, a trader said.

On Friday, the notes traded at 65 bid, 66 offered.

Over the afternoon, the issue had “only $3 million trading” and was almost flat at around 66.9, another source said.

The New York-based weight loss company reported a week ago lower revenue but also a profit in the second quarter.

WW, which operates WeightWatchers, in April completed a $132 million acquisition of telehealth company Weekend Health Inc., doing business as Sequence.

Shares in WW (Nasdaq: WW) closed up 8.56% at $9.77 Wednesday.

Diebold notes soft

Diebold Nixdorf’s 9 3/8% senior secured notes due 2025 were quoted at 16 bid, 18 offered on Wednesday.

Another source saw the notes in thin volume at the 21¾ to 21.85 area.

The company’s “junkiest one” was the 8½% senior notes due 2024 that were quoted Wednesday at 3½ bid, 4½ offered, a source said.

Diebold Nixdorf filed a pre-packaged Chapter 11 bankruptcy filing in May after entering into a restructuring agreement with key financial stakeholders for a comprehensive debt restructuring transaction.

The Hudson, Ohio-based financial and retail technology company 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 reported second-quarter results Wednesday and announced that it completed its financial restructuring and expects to emerge from Chapter 11 bankruptcy and Chapter 15 proceedings on Friday.

The company also said new shares will be relisted and open for trading on the New York Stock Exchange on Aug. 14 under the symbol “DBD.”

Distressed index positive

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns softened slightly Tuesday to 0.3% from 0.35% on Monday.

Month-to-date total returns were higher at 0.49% on Tuesday, compared to 0.2% on Monday and minus 0.15% on Friday.

Year-to-date distressed total returns rose to 15.5% on Tuesday from 15.16% at the week’s start.

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