AMC notes gain on capital raise; Allen Media surges on partnerships; Lumen improves

By Abigail W. Adams

Portland, Me., Sept. 14 – It was a strong day in the distressed debt space on Thursday as a renewed risk-on sentiment in the broader market and topical news continued to boost the space.

AMC Entertainment Holdings, Inc.’s senior notes continued to recoup their losses with buyers returning for the notes after the company completed its $325.5 million follow-on stock sale.

Allen Media LLC’s 10½% senior notes due 2028 (Caa1/CCC) surged in heavy volume after the company announced new partnership with CBS and inked a long-term media rights partnership with the Central Intercollegiate Athletic Association.

After a pullback over the past few sessions, Lumen Technologies, Inc.’s 4% senior secured notes due 2027 (B3/BB-) regained their previous level after the company’s CFO presented at an investor’s conference.

AMC’s capital raise

AMC’s senior notes continued to rebound from their late August APE conversion sell-off with the notes jumping 1 to 3 points from the successful completion of an equity capital raise.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) jumped 2½ points to close the day in the 71¾ to 72¼ context, a source said.

The yield was about 24½%.

There was $23 million in reported volume.

AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) rose 1½ points to close the day in the 69¾ to 70¼ context.

The yield was about 16 1/8%.

There was $11 million in reported volume.

AMC’s notes jumped on Thursday after the company announced it had completed its ‘at-the-market’ offering of 40 million shares, raising $325.5 million.

“People love them again,” a source said.

AMC’s notes have now nearly eliminated their losses since the heavy selling in late August surrounding the conversion of the company’s APE equity units.

The 10% senior notes were trading on a 76-handle until the APE conversion news dragged them as low as 61 in late August.

The 7½% notes are now at their previous level prior to the late August sell-off, which dragged them down to a 66-handle.

Allen Media surges

Allen Media’s 10½% senior notes due 2028 surged in heavy volume on Thursday after a slew of deals and partnerships sparked buying interest.

The 10½% notes jumped 3 points to close the day wrapped around 59, according to a market source.

The yield shrank to 26 7/8%.

There was $15 million in reported volume.

Allen Media was in focus after the company announced several new agreements and partnerships.

The company recently signed a multi-year media rights agreement with the Central Intercollegiate Athletic Association and announced a partnership with CBS Stations enabling the launch of 14 television channels.

Lumen recoups losses

After a pullback over the past few sessions, Lumen’s 4% senior secured notes due 2027 regained their level from last week’s surge following another investor presentation from the company’s CFO.

The 4% notes climbed 1½ points to a 65-handle in heavy volume.

They were trading in the 65 to 65 5/8 context heading into the market close, a source said.

The yield was about 18%.

There was $13 million in reported volume.

While the notes were trading on a 62-handle at the beginning of September, they jumped as high as 66 last Friday following a presentation by the CFO at Goldman Sachs’ Communacopia + Technology Conference.

While the notes gave back some gains over the past few sessions, they bounced back to last Friday’s level after the CFO presented at BofA Securities Media, Communications and Entertainment conference.

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