Staples active, mixed post-earnings call; iHeart jumps; Altice France secureds gain

By Abigail W. Adams

Portland, Me., Sept. 15 – It was a quiet day in the distressed debt space with broader markets soft and the topical trades that drove volume earlier in the week subsiding.

Staples Inc.’s senior notes were active although largely unchanged following the retailer’s earnings conference call.

Altice France Holding SA’s senior notes were mixed with its secured notes notching gains while its unsecured notes remained flat in heavy volume.

iHeartCommunications, Inc.’s 8 3/8% senior notes due 2027 (Caa1/CCC+) attracted strong buying interest on Friday with the notes bouncing more than 2 points to claim the title of the day’s largest gainer.

Staples on the move

Staples’ senior notes were mixed on Friday with the retailer’s secured notes unchanged and its unsecured notes falling after the retailer’s earnings conference call.

Staples’ 7½% senior secured notes due 2026 (B3/B) attracted the most attention on Friday although the notes continued to trade on an 82-handle.

The notes remained in the 82¼ to 82¾ context in active trade on Friday, according to a market source.

The yield was about 16%.

There was $9 million in reported volume.

Staples’ 10¾% senior notes due 2027 (Caa2/CCC+) fell about 1 point in lighter volume with the notes closing the day in the 59 to 59¼ context, a source said.

The notes were trading in a wide range of 60 to 61 heading into the conference call.

Staples’ senior notes have seen an active week with the notes bouncing on Tuesday after the company posted earnings results.

The 7½% secured notes traded up to an 84-handle following the initial results but quickly returned to their previous 82-handle to close the week largely unchanged.

The 10¾% senior notes jumped 3 points on Tuesday. While lower on Friday, they still closed the week with a 2 point gain.

The company posted a modest increase in adjusted EBITDA of $204 million and a slight decrease in sales on Tuesday, which was not as bad as anticipated, a source said.

iHeart gains

iHeart’s 8 3/8% senior notes due 2027 claimed the title of the largest gainer of Friday’s session with the notes jumping more than 2 points to a six-month high.

The 8 3/8% notes jumped to trade in the 74 to 75 context with the yield falling to about 18%, a source said.

There was $4 million in reported volume.

The trading level marked the highest for the notes since March.

The notes have been steadily bid up since Wednesday when the company presented at BofA’s media and communications conference.

The notes opened the week on a 70-handle.

Altice France secureds up

Altice France’s secured notes were on the rise in heavy volume with the notes attracting buyers as the company preps asset sales to address its debt burden.

Altice France’s 5¾% senior secured notes due 2029 (B3/B) rose ½ point to close the day at 83½ with the yield 9½%, according to a market source.

There was $20 million in reported volume.

Altice France’s 8 1/8% senior secured notes due 2027 (B2/B-) were also up about ½ point to close at 89 7/8, a source said.

There was $16.5 million in reported volume.

However, Altice’s 6% senior notes due 2028 were relatively flat and closed at 53½ with the yield 23½%.

Altice’s paper has been rising in active trade since late last week when reports surfaced about the company’s plan to sell assets to address its debt.

© 2015 Prospect News.
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