Radiology Partners gains; Bausch Health notes soften; DISH paper mixed; AMC bonds lower

By Cristal Cody

Tupelo, Miss., Aug. 15 – Overall distressed secondary supply slowed on Tuesday with trading more active in distressed health care services providers.

A bond from Radiology Partners Inc. was pegged as the most active distressed issue trading with $23 million of volume reported, a source said.

The 5¼% senior secured notes due 2025 (B3/CCC+) rose more than 2¼ points.

Bausch Health Americas, Inc.’s notes gave back about ¼ point to ½ point after rallying on Monday in strong volume.

In the broader equity markets, stocks slid in a wide sell-off on Tuesday.

The Nasdaq closed down 1.14%.

The CBOE Volatility index climbed 11.07% to 16.46.

The iShares iBoxx High Yield Corporate Bond ETF declined 24 cents, 0.32%, to $74.58.

Outside of the distressed health care space, DISH Network Corp.’s paper was mixed in one of the more active names.

The 5 1/8% senior notes due 2029 (Caa2/B-) rose ½ point on $5 million of volume.

DISH’s 7¾% senior notes due 2026 (Caa2/B-) were down more than ¼ point on $9.3 million of trading.

AMC Entertainment Holdings, Inc.’s notes declined on Tuesday in lighter trading activity, while the company’s stock edged back from Monday’s slide on plans to convert its preferred equity into common stock.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) fell 1 1/8 points on $3.5 million of volume.

Radiology paper up

Radiology Partners’ 5¼% senior secured notes due 2025 (B3/CCC+) were heavily traded on Tuesday with $23 million of bonds changing hands, a source reported.

The notes rose more than 2¼ points to 73 bid.

S&P Global Ratings downgraded parent Radiology Partners Holding LCC in June.

The El Segundo, Calif.-based radiology services provider issued the secured notes in December 2020 in a $800 million offering at par via entity RP Escrow Issuer, LLC.

Bausch edges lower

Bausch Health Cos. Inc.’s 6 1/8% senior secured notes due 2027 (Caa1/CCC+/B) dropped more than ¼ point to 64¼ bid on $8.9 million of trading on Tuesday, a source said.

The 11% senior secured notes due 2028 (Caa1/CCC+/B) slipped ½ point to a 71 handle in quieter activity totaling $2 million.

Bausch’s bonds traded about 1 point to more than 5 points better on Monday on more than $17 million of volume.

The company is facing a securities class action lawsuit that alleges violations of federal securities laws, including omissions and fraudulent misrepresentations regarding the company’s business, operations and prospects.

The Laval, Quebec-based pharmaceutical company’s common stock (NYSE: BHC) fell 1.19% to $8.32 on Tuesday.

DISH paper active

DISH DBS Corp.’s 7¾% senior notes due 2026 (Caa2/B-) were down more than ¼ point on a 76 handle on $9.3 million of volume on Tuesday, a source said.

The notes have declined from trading at 77 7/8 bid on Friday.

DISH’s 5 1/8% senior notes due 2029 (Caa2/B-) rose ½ point to a quote of around 57½ bid on $5 million of volume Tuesday afternoon.

The bonds have softened from a quote of 59 bid on Friday.

DISH’s 7 3/8% senior notes due 2028 (Caa2/B-) also fell ¼ point to 65¾ bid on $5.5 million of trading Tuesday.

Secondary volume soared past $400 million in the bonds last week after the company announced that it plans to merge with EchoStar.

The Englewood, Colo.-based satellite cable operator’s stock (Nasdaq: DISH) closed Tuesday off 3.08% to $7.56.

AMC notes soften

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) declined 1 1/8 points to 75 7/8 bid on $3.5 million of trading Tuesday afternoon, a source said.

The bonds went out Monday 3 points lower on $9 million of volume after the company announced a court ruling gave the go-ahead on Friday for its preferred equity lawsuit settlement.

AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) also dropped 1 5/8 points to 71 3/8 bid on $2 million of secondary supply on Tuesday.

The issue was flat on Monday at 73½ bid on $7 million of trading.

AMC announced in regulatory filings on Monday that the Delaware Court of Chancery approved the settlement of a shareholder lawsuit brought by Allegheny County Employees’ Retirement System over the company’s issuance of preferred stock.

The company reported it plans to increase the total number of authorized shares of its class A common stock and effect a reverse stock split at a ratio of one share of class A common stock for every 10 shares of class A common stock effective Aug. 24.

The reverse stock split and share increase will allow the conversion of all of AMC’s outstanding preferred equity units into shares of class A common stock.

AMC said it expects the APEs to be delisted from the New York Stock Exchange and cease trading on Aug. 25.

The Leawood, Kan.-based movie theater owner’s common stock (NYSE: AMC) recovered 8.55% on Tuesday to close at $3.68 in heavy trading. Shares sank 35.55% on Monday.

AMC’s preferred stock (NYSE: APE) added 1.93% on the day to $2.11 after picking up 16.29% on Monday.

Distressed index higher

The S&P U.S. High Yield Corporate Distressed Bond index one-day total returns were 0.41% on Monday, up from minus 0.07% ahead of the weekend and 0.35% in the same session last week.

Month-to-date total returns hit 2.04% on Monday, up from 1.62% on Friday and 0.2% in the week-ago session.

Year-to-date distressed total returns rose to 17.28% from 16.79% on Friday and 15.16% at the start of the prior week.

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