Rite Aid mostly higher; Anywhere Real Estate bonds climb; Level 3, Lumen paper improve

By Cristal Cody

Tupelo, Miss., Oct. 24 – Distressed trading remained strong in Rite Aid Corp. paper Tuesday.

Rite Aid’s 8% senior secured notes due 2026 (/D/CC) picked up 1/8 point in fairly active trading that hit $12 million.

The bankrupt retailer’s 7½% senior secured notes due 2025 (/D/CC) fell ¾ point in thin supply of $1 million over the session.

Anywhere Real Estate Inc.’s paper climbed Tuesday after the company posted a jump in third-quarter earnings.

The 5¾% senior notes due 2029 (B3/B-) rocketed up 3¾ points on more than $12 million of notes traded.

More than 1,500 earnings reports from publicly traded companies are expected to be released this week.

Stocks turned positive Tuesday with indices all more than ½% better. The S&P 500 indexclosed up 0.73%.

The iShares iBoxx High Yield Corporate Bond ETF rose 37 cents, or 0.51%, to $72.59.

The CBOE Volatility Index moved off 7.31% to 18.88.

Level 3 Financing, Inc.’s paper was moving higher in lighter trading over the session.

Level 3’s 4 5/8% senior notes due 2027 (B3/CCC+/B) rose ½ point on $6.25 million of volume.

Parent Lumen Technologies, Inc.’s 4% senior secured notes due 2027 (Caa2/B) also were up ½ point on $4 million of activity Tuesday.

Rite Aid mixed

Rite Aid’s 8% senior secured notes due 2026 (/D/CC) edged up 1/8 point to 71 1/8 bid Tuesday on $12 million of secondary volume, a source said.

The notes improved 1½ points in the prior session on more than $15 million of trading.

Rite Aid’s bonds are tracking about 5 points better since the retailer announced on Oct. 15 that it filed for Chapter 11 bankruptcy.

Also Tuesday, the issuer’s 7½% senior secured notes due 2025 (/D/CC) fell ¾ point to 71 bid in thin trading totaling $1 million.

The Philadelphia-based retailer reported that it has obtained commitments for $3.45 billion of debtor-in-possession facilities.

Anywhere Real Estate up

Anywhere Real Estate Group LLC’s 5¾% senior notes due 2029 (B3/B-) shot up to 67¾ bid Tuesday from 64 bid in the prior session on more than $12 million of notes traded, a source said.

The notes have an upcoming call date on Jan. 15.

The company’s 5¼% senior notes due 2030 (B3/B-) also were over 3 points better at around 65¼ bid, up from 62 bid on Monday on over $7 million of secondary volume.

Anywhere Real Estate said Tuesday third-quarter revenue was down 12%, but the company also posted a 135% increase in income following a loss last year.

The company, formerly known as Realogy, is a real estate services company based in Madison, N.J.

Level 3, Lumen better

Level 3’s 4 5/8% senior notes due 2027 (B3/CCC+/B) were among the issuer’s most active bonds over the day, a source said.

The notes traded up ½ point to 66¾ on $6.25 million of volume.

Level 3’s 4¼% senior notes due 2028 (B3/CCC+/B) went out up 1 point at 57 bid in lighter activity on $2 million of trading supply.

The 4% senior secured notes due 2027 (Caa2/B) from parent Lumen also were up ½ point at 65¼ bid on $4 million of activity Tuesday.

The Denver-based telecommunications company will report third-quarter earnings results on Oct. 31.

Distressed index positive

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns were positive on Monday for the first time in more than a week.

One-day total returns were 0.1%, up from minus 0.74% on Friday and minus 0.17% in the same session a week ago.

Month-to-date total returns remained soft at minus 4.01% on Monday, compared to minus 4.1% on Friday and minus 1.66% in the week ago session.

Year-to-date distressed total returns improved to 13.05% at the start of the week from 12.94% ahead of the weekend but remained down from 15.81% a week earlier.

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