Team Health paper shoots up; Altice France declines; Sinclair notes active; DISH lower

By Cristal Cody

Tupelo, Miss., Aug. 18 – Overall junk trading action slowed on Friday with activity in the distressed space light.

Team Health Holdings, Inc.’s 6 3/8% notes due 2025 (Ca/CCC-/CC) climbed 8¼ points on $2 million of secondary action.

Team Health’s notes have rallied close to 20 points since last week.

Altice France Holding SA’s 10½% senior notes due 2027 (Caa2/CCC) were down ¾ point in one of the most active distressed names on $5.7 million of trading over the afternoon, a source said.

The weeklong slide in stocks moderated on Friday.

The Nasdaq, down 1.14% Tuesday, 1.15% Wednesday and 1.17% on Thursday, closed Friday off 0.2%.

The iShares iBoxx High Yield Corporate Bond ETF rose 5 cents, 0.07%, to $74.09.

The ‘Fear Factor’ index subsided. The CBOE Volatility index fell 3.3% to 17.30.

Sinclair Broadcast Group, Inc.’s paper was active in the secondary market over the session.

The company is being sued by subsidiary Diamond Sports Group LLC, which filed for Chapter 11 bankruptcy in March.

Sinclair’s 5½% senior notes due 2030 (B2/B-) were trading with a handle in the low 50s on $5 million of volume.

Bonds from DISH Network Corp. slipped more than 1 point on under $10 million of secondary supply on Friday.

DISH’s 7¾% senior notes due 2026 (Caa2/B-) fell 1¾ points.

Altice’s, Sinclair’s and DISH’s paper was higher on the week and among the top gainers in the distressed market, BofA Securities reported on Friday.

Altice added 0.9 point, Sinclair paper was up 3.7 points and DISH traded 1.3 points stronger this week, BofA said.

Team Health jumps

Team Health’s 6 3/8% senior notes due 2025 (Ca/CCC-/CC) climbed 8¼ points to 70½ bid on $2 million of trading on Friday, a source said.

The issue traded in the 70¼ to 70½ bid area over the session.

The yield was 33.87%.

Team Health’s notes traded with handles in the low 60s earlier this week and in the mid-50s in the prior week, the source said.

Team Health reported to investors this month that it received new financing commitments from a group including Brigade Capital Management LP and King Street Capital Management LP. The deal includes $750 million of new first-lien notes and a $475 million accounts receivable facility, according to news reports.

Team Health is a Knoxville, Tenn.-based medical staffing firm owned by Blackstone Group LP.

Altice lower

Altice France Holding’s 10½% senior notes due 2027 (Caa2/CCC) were down ¾ point at 52 bid in one of the most active distressed names on $5.7 million of trading over the afternoon, a source said.

The yield was 34.15%.

Altice’s notes have improved nearly 10 points since late July. The issue was quoted at 42½ bid on July 28.

The company came under duress last month 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.

Altice USA’s stock (NYSE: ATUS) shed 2.15% on Friday to close at $3.19 in thin activity.

Sinclair active

Sinclair Television Group Inc.’s 5½% senior notes due 2030 (B2/B-) were quoted Friday at 54¾ bid with a yield of 17.3%, a source said.

The bonds had $5 million of paper change hands.

Sinclair subsidiary Diamond Sports in July filed a complaint in the U.S. Bankruptcy Court for the Southern District of Texas against its parent company and others over transactions taken against its interests since the sports broadcaster was acquired from Walt Disney Co. in August 2019.

Diamond Sports filed for bankruptcy in March.

The Chesapeake, Va.-based company missed $140 million of interest payments on three tranches of notes due Feb. 15.

Shares (Nasdaq; SBGI) in Sinclair, a Hunt Valley, Md.-based media company focused on location television stations, digital platforms and sports networks, fell 0.51% to $13.61 in quiet trading.

DISH softens

DISH DBS Corp.’s 7¾% senior notes due 2026 (Caa2/B-) gave back 1¾ points to trade at 73¾ bid on $4.15 million of volume on Friday, a source said.

The issue declined 1 point on Thursday on more than $12 million of volume.

DISH’s 5¾% senior secured notes due 2028 (B2/B) also traded off 1¼ points to 77¾ bid on $2.6 million of activity on Friday.

The company’s paper has mostly declined this week after rallying in the prior week on DISH’s plans to merge with EchoStar.

The Englewood, Colo.-based satellite cable operator’s stock (Nasdaq: DISH) dropped 3.32% on Friday to $6.69 in light trading.

Corporate returns drop

The S&P U.S. High Yield Corporate Distressed Bond index one-day total returns declined on Thursday to minus 0.5% from 0.1% on Wednesday, minus 0.05% on Tuesday and 0.41% on Monday.

Month-to-date total returns fell to 1.57% versus 2.08% on Wednesday, 1.98% on Tuesday and 2.04% at the start of the week.

Year-to-date distressed total returns were lower on Thursday at 16.74%, compared to 17.33% midweek, 17.21% on Tuesday and 17.28% on Monday.

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