CommScope paper ‘mowed’ in secondary; Anywhere Real Estate down; Community Health lower

By Cristal Cody

Tupelo, Miss., Oct. 31 – CommScope Holding Co., Inc.’s paper eroded further on Tuesday after plunging Monday on the company’s pessimistic preliminary third-quarter report.

“CommScope is definitely getting mowed again today,” a trader said.

The company’s 6% senior notes due 2025 (Caa1/CCC+) were down more than 11 points on $90.58 million of secondary action following a drop of 15¼ points on Monday.

CommScope, Inc.’s 8¼% senior notes due 2027 (Caa1/CCC+) were trading Tuesday afternoon down more than 10 points on the day and nearly 20 points lower week to date.

Volume was heavy with more than $30 million of activity seen by late afternoon in the issue.

First Quantum Minerals Ltd.’s paper remained volatile a second session, a source said.

The 8 5/8% senior notes due 2031 (//B+) went out Tuesday at 83 bid, 84 offered, down from 89 bid, 90 offered on Monday and 95 bid, 96 offered on Friday.

Anywhere Real Estate Inc.’s paper also saw pressure over the session after S&P Global Ratings downgraded the issuer on Tuesday and following a Kansas City, Mo., jury ruling against the National Association of Realtors, sources reported.

The 5¾% senior notes due 2029 (B3/CCC+) dropped about 5 points.

Volatility decreased more than 8% on Tuesday, while stocks all climbed ahead of the Federal Reserve’s rate decision on Wednesday.

The CBOE Volatility index declined 8.15% by the close to 18.14.

The S&P 500 index rose 0.65%.

The iShares iBoxx High Yield Corporate Bond ETF added 19 cents, or 0.26%, to $72.57.

“Busier,” a source said of the day’s market. “There was definitely some action today. The most activity was in Ford – they got upgraded to investment grade.”

Elsewhere, Community Health Systems Inc.’s paper was soft from the start of the session, according to a market source.

The 6 1/8% secured notes due 2030 (Caa2/CCC-) traded down 1¾ points over the morning and went out more than 2 points weaker.

CommScope paper mixed

CommScope Technologies LLC’s 6% senior notes due 2025 (Caa1/CCC+) were down the most among the issuer’s most active paper on Tuesday, sources said.

The notes went out at 61 bid, 63 offered.

CommScope’s issue was last seen Tuesday down 11½ points at 61 bid on $90.58 million of paper traded, another source said.

The yield was 41.31%.

The notes plunged 15¼ points on Monday to a quote of 74 bid and a 26.76% yield on $71.8 million of trading.

The issue closed Friday at 89 bid, 90 offered and opened Monday at 85 bid, 87 offered.

“It then proceeded to trade off quite a bit Monday and today,” a trader said.

CommScope, Inc.’s 8¼% senior notes due 2027 (Caa1/CCC+) slid to 41½ bid, 42½ offered by Tuesday’s close.

Volume was heavy with more than $33 million of activity over the session.

The issue dropped 8 points on Monday to head out at 53 bid, 54 offered and closed Friday at 61 bid, 62 offered.

The notes are callable on Nov. 29.

CommScope’s 5% senior notes due 2027 (Caa1/CCC+), also callable on Nov. 29, declined 7¾ points on Tuesday to 35 bid on over $11 million of secondary volume.

CommScope Holding reported on Monday that it expects preliminary third-quarter losses and adjusted its 2023 EBITDA forecast downward.

S&P placed the company on CreditWatch negative on Tuesday.

The Hickory, N.C.-based network infrastructure manufacturer’s shares (Nasdaq: COMM) closed flat at $1.48 after sinking 38.84% on Monday.

Anywhere Real Estate down

Anywhere Real Estate Group LLC’s 5¾% senior notes due 2029 (B3/CCC+) declined on Tuesday to 61½ bid, 62½ offered, a source said.

The bonds traded on Monday at 66½ bid, 67½ offered.

In the same session a week ago, the issue was quoted at 67¾ bid after the company reported third-quarter results.

Anywhere Real Estate’s 7% senior secured second-lien notes due 2030 (Ba3/B) also moved off to 79 bid, 80 offered on Tuesday from where the issue traded on Monday at 82¾ bid, 83¾ offered.

S&P said Tuesday that it downgraded Anywhere Real Estate based on increasing credit risk with elevated mortgage rates expected to continue in 2024.

On Tuesday, a Kansas City jury ruled against the National Association of Realtors and some real estate companies over inflating brokerage fees.

Anywhere Real Estate announced on Oct. 6 that it agreed to pay an $83.5 million settlement to resolve all claims in the litigation without admitting liability.

A hearing for preliminary approval of the settlement is expected in November with final court approval anticipated in mid-2024, the company said.

Anywhere Real Estate’s brands include Coldwell Banker, Century 21, Corcoran, Sotheby's International Realty and Better Homes and Gardens Real Estate.

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

Community Health softens

Community Health’s 6 7/8% senior secured notes due 2029 (Caa2/CCC-) declined 2½ points on Tuesday to 41½ bid in mostly light trading totaling over $2 million, a source said.

The issue was down about 3½ points since Friday.

Community Health’s 6 1/8% senior secured notes due 2030 (Caa2/CCC-) also dropped 2 1/8 points over the day to 38¾ bid in light supply.

The notes have declined around 4 points week to date.

In the prior week, the Franklin, Tenn.-based operator of acute care and outpatient facilities reported third-quarter losses improved from 2022.

Distressed returns weak

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns finished Monday down to minus 0.49% from minus 0.22% on Friday and 0.1% in the same session a week ago.

Month-to-date total returns dropped on Monday to minus 5.39% versus minus 4.93% on Friday and minus 4.01% in the week-ago session.

Year-to-date distressed total returns softened to 11.42% on Monday from 11.97% ahead of the weekend and 13.05% in the same session last week.

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