AMC Entertainment notes slip; DISH bonds improve; Altice France paper rallies

By Cristal Cody

Tupelo, Miss., Sept. 7 – AMC Entertainment Holdings, Inc.’s paper continued to rack up heavy secondary action on Thursday.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) fell nearly 1 point on $23 million of trading after shedding 2 points on Wednesday on $19 million of volume.

Elsewhere, DISH Network Corp.’s bonds improved about 1 point to 1¼ points in strong secondary activity over the day.

DISH’s 7¾% senior notes due 2026 (Caa2/B-) were 1 point better on $9 million of volume during the session.

Also in the space, Altice France Holding SA’s paper was strongly traded and among the day’s biggest gainers in the distressed market, a source reported.

Altice France’s 10½% senior notes due 2027 (Caa2/CCC) rallied over 2 points on $12 million of paper traded by the close.

The 6% notes due 2028 (Caa2/CCC) jumped 3½ points.

Market tone was mixed with equity indices closing mostly lower on the day.

The S&P 500 index declined 0.32%, while the iShares iBoxx High Yield Corporate Bond ETF added 25 cents, or 0.34%, to $74.65.

The CBOE Volatility index was little changed and went out 0.35% lower at 14.40.

AMC bonds pressured

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) fell nearly 1 point to around 67 bid on $23 million of bonds traded on Thursday, a source reported.

In the prior session, the notes dropped 2 points on $19 million of secondary action.

The notes were about 2¾ points lower on the week.

AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) were nearly ½ point lower on Thursday on a 67 bid handle in trading that totaled $5 million.

The notes were off about ½ point on Wednesday on $5 million of volume.

The secured notes were down about 1¼ points on the week.

AMC’s stock and bonds have been under pressure since the company converted its preferred equity into class A common stock in August.

Shares plunged 37% on Wednesday after AMC filed a prospectus supplement to sell up to 40 million shares of class A common stock.

The Leawood, Kan.-based movie theater owner’s stock (NYSE: AMC) fell another 5.8% on Thursday to end at $8.12 in heavy trading.

DISH perks up

DISH DBS Corp.’s 7¾% senior notes due 2026 (Caa2/B-) went out Thursday 1 point better at 75¾ bid on $9 million of volume, a source said.

The bonds were quoted Wednesday flat on $11 million of secondary trading.

The 7 3/8% senior notes due 2028 (Caa2/B-) also were 1 point higher on Thursday at 64½ bid on $6 million of activity.

In the prior session, the issue fell ¾ point on $6 million of volume.

Volatility has been rampant in DISH’s bonds over the past month following the company’s announcement of plans to merge with EchoStar.

The Englewood, Colo.-based satellite cable operator’s stock (Nasdaq: DISH) was down 3.22% at $6.01 in light activity.

Altice notes gain

Altice France Holding’s 10½% senior notes due 2027 (Caa2/CCC) picked up over 2 points in strong trading totaling $12 million on Thursday, a source said.

The notes were quoted around 59½ bid with a 29% yield.

The issue was last seen Tuesday 1½ points better at 56 bid and a 31.43% yield on $4 million of volume.

Altice’s 6% notes due 2028 (Caa2/CCC) also climbed 3½ points by the close on Thursday to a quote of 50 bid on $5 million of paper traded.

The notes were seen Tuesday moving with a 44 handle.

Altice’s paper came under pressure over the summer 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.

New York-based broadband communications provider Altice USA’s stock (NYSE: ATUS) closed down 3.86% to $2.99 on Thursday.

Distressed index dips

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns softened on Wednesday to minus 0.05% from 0.1% in the first session of the short holiday week.

Month-to-date total returns slipped to 0.12% midweek from 0.17% on Tuesday.

Year-to-date distressed total returns fell to 17.26% in the prior session from 17.32% at the start of the week.

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