AMC notes rise; CSC Holdings adds to gains; DISH paper up as broadcasters recover

By Abigail W. Adams

Portland, Me., Sept. 11 – The distressed debt space was off to a quiet start on Monday although several names saw a bid with a risk-on sentiment returning ahead of Wednesday’s Consumer Price Index report.

AMC Entertainment Holdings, Inc.’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) remained in focus with the notes continuing to improve after recent volatility.

DISH Network Corp.’s senior notes (Caa2/B-) were also on the rise as buyers returned for broadcasters that were battered the previous week due to carriage fee disputes.

Altice USA, Inc. subsidiary CSC Holdings, LLC’s 5¾% senior notes due 2030 (Caa2/CCC+) were among the top gainers in the distressed debt space with the uptrend in the credit gaining steam as the majority owner explores asset sales.

AMC notes active

Buyers were back for AMC’s 10% senior secured second-lien notes due 2026 on Monday after a volatile few weeks.

The 10% notes rose 1 point to close the session at 68¾, a source said.

The yield was 26 5/8%.

There was $16 million in reported volume.

The notes continued to improve after falling 2½ points the previous week following news of a planned stock sale that sent AMC shares to a 52-week low.

AMC’s stock also saw a strong session, closing the day up 2.3%.

AMC’s senior notes have been volatile over the past month and a half as the company completed the conversion of its APE equity units.

The conversion sparked a sell-off in the name with the notes driven lower last week as the company announced plans to sell 40 million shares from time to time through an “at-the-market” program.

While the news should have bolstered the company’s bonds with proceeds to be used to repay debt, the deflating stock price has been a cause for concern as market players question how much the company will be able to raise, a source said.

DISH improves

DISH Network’s senior notes were on the rise alongside other broadcasters as the sector in general rebounded following news that Disney and Charter had resolved their carriage fee dispute.

DISH’s notes rose ½ to 1½ points following the news.

The 7¾% senior notes due 2026 were up ½ point to close the day at 77½, according to a market source.

The yield was about 18 3/8%.

There was $8 million in reported volume.

DISH’s 5 1/8% senior notes due 2029 closed the day at 57 7/8 with the yield 16 7/8%.

The 7 3/8% senior notes due 2028 gained 1¼ points to close the day at 67¼ with the yield 17¾%.

DISH was among the broadcasters that were battered as investors fled the sector amid concerns over carriage fee disputes.

However, the notes were rebounding alongside the broader sector as the Charter-Disney resolution allayed concerns.

CSC Holdings gains

CSC Holdings’ 5¾% senior notes due 2030 jumped on Monday with the notes among the largest gainers in the distressed debt space.

The notes rose almost 3 points to close the day on a 59-handle.

The notes were changing hands in the 59 to 59¼ context heading into the market close.

The yield was about 16 3/8%.

The Altice USA subsidiary’s notes have steadily improved since majority owner Patrick Drahi announced that he was exploring selling some of Altice France’s assets to help address Altice France’s debt burden.

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