AMC bonds pick up steam; DISH notes steady to lower; bankrupt WeWork secured notes sink

By Cristal Cody

Tupelo, Miss., Nov. 8 – AMC Entertainment Holdings, Inc.’s bonds improved on Wednesday ahead of the company’s after-market release of its third-quarter report.

The 10% senior secured second-lien notes due 2026 (Caa3/CCC-) rallied nearly 2½ points on more than $11 million of notes changing hands.

AMC reported after the market closed Wednesday that third-quarter revenue climbed 45.2%, while earnings were positive after a loss in 2022.

DISH Network Corp.’s bonds continued to see mostly strong trading on Wednesday after already racking up heavy volume in the first two sessions of the week, sources reported.

DISH’s 5 7/8% senior notes due 2024 (Caa2/B-) fell ¾ point on more than $21 million of bonds traded during the session.

The 5 1/8% senior notes due 2029 (Caa2/B-) were unchanged going out the door on $5 million of secondary activity.

Markets weakened across sectors Wednesday.

West Texas Intermediate crude oil benchmark futures for December deliveries declined $2.04 to $75.33 a barrel.

Equities mostly declined while Treasury yields continued to move away from 5%. The S&P 500 index and Nasdaq both edged higher. The S&P 500 closed up 0.1%.

The iShares iBoxx High Yield Corporate Bond ETF rose 4 cents, or 0.05%, to $74.16.

The benchmark 10-year note yield fell 5 basis points to 4.52%.

The CBOE Volatility index moved off 2.7% to 14.41.

WeWork Inc.’s paper sank on Wednesday on the heels of the company’s Chapter 11 bankruptcy late Monday and widely reported Tuesday.

WeWork’s 15% first-lien senior secured notes due 2027 (/D/C) dropped 9 points.

AMC higher

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) climbed nearly 2½ points on Wednesday to a 79 bid handle on $11.5 million of secondary volume, a source said.

In lighter supply, AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) rose over ¾ point to near 71½ bid on $3 million of trading over the session.

The company reported after the market closed on Wednesday that third-quarter revenue climbed 45.2%.

AMC posted quarterly earnings of $12.3 million, or 8 cents a share, versus a loss of $226.9 million, or $2.20 a share, last year.

The Leawood, Kan.-based movie theater owner’s stock (NYSE: AMC) closed down 1.27% to $10.09.

DISH mixed

DISH DBS Corp.’s 5 1/8% senior notes due 2029 (Caa2/B-) went out flat at 47¼ bid on $5 million of notes traded on Wednesday, a source said.

Trading slowed from Tuesday when the notes added ½ point on $9 million of activity.

The bonds gave back 6 points on Monday on $11.99 million of secondary volume.

DISH’s issue that saw the bulk of trading over the day was the 5 7/8% senior notes due 2024 (Caa2/B-), which fell ¾ point to 85¼ bid on $21.7 million of volume.

The bonds declined 1/8 point on Tuesday on $17.6 million of activity and slid over 8 points on Monday on $41.73 million of trading.

DISH’s paper weakened after the company reported Monday third-quarter losses.

The Englewood, Colo.-based satellite cable operator’s stock (Nasdaq: DISH) finished the day 3.84% higher at $3.65 in heavy trading.

WeWork skids

WeWork’s 15% first-lien senior secured notes due 2027 (/D/C) dropped 9 points to a quote of 42½ bid with a 43.35% yield on Wednesday, a source said.

Trading was light with $1.5 million of volume reported.

WeWork filed Chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court for the District of New Jersey.

The company said it has entered into a restructuring support agreement with investor SoftBank Group Corp. and holders of about 92% of the company’s first-, second- and third-lien notes.

WeWork’s bonds have been thinly traded since the company missed interest payments in October.

On Oct. 2, the New York-based office share company skipped $37.3 million of interest payments due on its first-, second- and third-lien notes with 2027 maturities.

WeWork’s forbearance agreement gave it until Nov. 6 before holders could take action over non-payment.

Distressed index moves up

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns improved in the prior session to 0.36% from minus 0.21% on Monday.

Month-to-date total returns climbed to 1.28% on Tuesday from 0.92% at the week’s start.

Year-to-date distressed total returns rose to 11.92% in the second session of the week from 11.52% on Monday.

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