Distressed cable paper active; Cox, Altice, DISH trade; Rite Aid secured notes decline

By Cristal Cody

Tupelo, Miss., Sept. 5 – Secondary trading stayed on the light side in the distressed debt market on Tuesday as primary action soared in the high-grade space over the post-Labor Day session.

Cable and broadband providers saw some of the day’s most active trading, sources reported.

The 8 7/8% senior notes due 2027 (Caa1/CCC+) from CMG Media Corp., doing business as Cox Media Group, went out as the most active distressed issue seen trading over the day on $7 million of volume, a source said.

Altice France Holding SA’s paper improved on $5 million of trading on Tuesday.

The 10½% senior notes due 2027 (Caa2/CCC) climbed 1½ points over the day.

DISH Network Corp.’s notes were active over the session on $6 million of secondary action.

DISH’s 7¾% senior notes due 2026 (Caa2/B-) have given back about 1 point since late August.

Market tone was weak on Tuesday in the first session back following the long holiday weekend.

The S&P 500 index closed down 0.42%, while the iShares iBoxx High Yield Corporate Bond ETF fell 49 cents, or 0.65%, to $74.58.

The CBOE Volatility index increased 1.37% Tuesday to 14.01.

In other distressed paper, Rite Aid Corp.’s 8% senior secured notes due 2026 (Caa3/C/B) slipped 1/8 point on $5 million of trading on Tuesday.

Cox in focus

Cox Media Group’s 8 7/8% senior notes due 2027 (Caa1/CCC+) were quoted on Tuesday at 78¼ bid on $7 million of volume, a source said. The yield was 16.09%.

The Atlanta-based media conglomerate is owned by Apollo Global Management, Inc. and Cox Enterprises, Inc.

Altice improves

Altice France Holding’s 10½% senior notes due 2027 (Caa2/CCC) traded on Tuesday 1½ points better at 56 bid on $4 million of secondary action, a source said.

The yield was 31.43%.

Altice’s 6% notes due 2028 (Caa2/CCC) were quoted on a 44 handle on $1 million of trading by the close.

The issuer’s bonds have recovered some after sliding in July due to 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’s 10½% senior notes due 2027 were quoted at 42½ bid on July 28.

New York-based broadband communications provider Altice USA was reported in July to be considering a sale of its Cheddar News network.

Altice USA’s stock (NYSE: ATUS) declined 2.29% on Tuesday to $2.99 in thin supply.

DISH bonds active

DISH DBS Corp.’s 7¾% senior notes due 2026 (Caa2/B-) traded with a 74 bid handle on $5 million of secondary volume on Tuesday, a source said.

The bonds have given back about 1 point since late August.

DISH’s 7 3/8% senior notes due 2028 (Caa2/B-) went out at 63¼ bid in light supply totaling $1 million.

The issue traded with a 55 bid handle in late July.

DISH’s bonds were volatile in August on its plans to merge with EchoStar.

The Englewood, Colo.-based satellite cable operator’s stock (Nasdaq: DISH) improved 2.52% on Tuesday to $6.11.

Rite Aid dips

Rite Aid’s 8% senior secured notes due 2026 (Caa3/C/B) slipped 1/8 point to head out Tuesday at 63 3/8 bid on $5 million of trading, a source said.

The notes went out Friday unchanged on $4 million of volume but were over 7 points better on the week following news reports that the retailer plans to soon file for Chapter 11 bankruptcy.

Rite Aid’s credit default swap spreads gapped out more than 8,000 basis points in the prior week.

The Camp Hill, Pa.-based drugstore chain’s stock (NYSE: RAD) fell 2.25% to 74 cents in light trading.

Distressed index soft

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns were soft on Friday in the first session of September.

Returns were 0.07%, down from 0.14% on Thursday and 0.26% in the first session of the week.

Year-to-date distressed total returns improved on Friday to 17.2%, compared to 17.12% in the prior session and 16.17% at the start of week.

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