Lumen, Level 3 mostly higher; Hawaiian Airlines, Ardagh notes slide; iHeart drops

By Cristal Cody

Tupelo, Miss., Oct. 27 – Lumen Technologies, Inc.’s 4% senior secured notes due 2027 (Caa2/B/BB-) traded heavily over Friday’s session ahead of its earnings release in the week ahead.

The bonds were up about 2 points on $18 million of volume by the afternoon.

Subsidiary Level 3 Financing, Inc.’s 4¼% senior notes due 2028 (B3/CCC+/B) also traded over ¾ point higher on $12.4 million of activity.

Hawaiian Airlines, Inc.’s paper was creeping closer to the distressed space after back-to-back heavy trading Thursday and Friday.

The 5¾% first-lien senior secured notes due 2026 (Ba3) fell 2½ points on $18.6 million of paper traded.

But one of the day’s weakest bonds was Ardagh Group SA’s 6½% senior secured notes due 2027 (Caa3/B-), which sank 6¼ points on more than $12 million of trading.

Stocks continued to mostly sell off on Friday with the Nasdaq the lone index closing higher. The S&P 500 index fell 0.48%.

The iShares iBoxx High Yield Corporate Bond ETF declined 9 cents, or 0.12%, to $72.36.

The CBOE Volatility index was 2.85% higher at 21.27.

In other distressed paper, iHeartCommunications, Inc.’s 8 3/8% senior notes due 2027 (Caa1/CCC+) stayed under pressure on Friday.

The bonds slipped 1½ points.

Lumen, Level 3 mostly up

Lumen’s 4% senior secured notes due 2027 (Caa2/B/BB-) improved about 2 points to a print of 68.438 on $18 million of notes traded on Friday, a source said.

Meanwhile, Lumen’s 5 1/8% senior notes due 2026 (Caa3/CCC-) dropped over 4 points during the session to 47½ bid in light trading totaling $2.7 million.

Subsidiary Level 3’s 4¼% senior notes due 2028 (B3/CCC+/B) traded more than ¾ point better at a quote of 58½ bid on $12.4 million of volume on Friday.

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

Hawaiian Airlines slips

Hawaiian Airlines’ 5¾% first-lien senior secured notes due 2026 (Ba3) fell 2½ points on Friday to 76 bid and yielding 19.28% on $18.6 million of paper traded, a source said.

On Thursday, the notes declined more than ¾ point on $25 million of volume.

Honolulu-based Hawaiian Holdings, Inc. on Tuesday announced third-quarter earnings losses due in part to the West Maui wildfires in August.

Ardagh drops

Ardagh Finance SA’s 6½% senior secured notes due 2027 (Caa3/B-) slid 6¼ points to 58½ bid on Friday on more than $12 million of paper changing hands, a source said.

The bonds were yielding 24.18%.

The notes from the Luxembourg-based metal and glass packaging company shed 4¾ points to a quote of 64¾ bid in the prior session on $3.4 million of volume.

Ardagh Group announced weaker results in its earnings report on Thursday.

iHeartMedia lower

iHeartCommunications’ 8 3/8% senior notes due 2027 (Caa1/CCC+) fell 1½ points to hit 63 bid on $8.5 million of secondary supply by the afternoon, a source said Friday.

The bonds gave back nearly ½ point on Thursday on $5.4 million of trading and were 1/8 point lower on Wednesday on more than $8 million of volume.

San Antonio-based parent media broadcasting company iHeartMedia, Inc. will report third-quarter earnings results on Nov. 9.

Distressed returns lower

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns dropped to minus 0.72% on Thursday from minus 0.34% on Wednesday, 0.32% on Tuesday and 0.1% at the start of the week.

Month-to-date total returns widened to minus 4.72%, compared to minus 4.02% on Wednesday, minus 3.7% on Tuesday and minus 4.01% on Monday.

Year-to-date distressed total returns declined to 12.22% in the prior session from 13.03% midweek, 13.42% on Tuesday and 13.05% at the week’s start.

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