AMC secured paper declines; Bausch improves in thin supply; CommScope slightly better

By Cristal Cody

Tupelo, Miss., Nov. 28 – AMC Entertainment Holdings, Inc.’s bonds edged lower on Tuesday in one of the most active distressed names seen in the secondary market.

AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) fell about ½ point on more than $19 million of paper traded during the session.

The company’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) went out more than ¼ point lower in activity totaling over $9 million.

In the distressed health care space, Bausch Health Cos. Inc.’s notes were steady to more than 1 point better, but trading was thin on less than $5 million of total volume over the session, a source said.

The 11% senior secured first-lien notes due 2028 (Caa1/CCC+/B) were among the day’s gainers with the issue going out 1¼ points better.

The CBOE Volatility index was unchanged on the day at 12.69.

Stock indices mostly ended higher as Treasury yields declined.

The S&P 500 index closed up 0.1%.

The junk space was stronger. The iShares iBoxx High Yield Corporate Bond ETF added 33 cents, or 0.44%, to $75.44.

In other distressed paper, CommScope Holding Co., Inc. saw modest gains after softening on Monday.

The 8¼% senior notes due 2027 (Caa2/CCC-) edged up 3/8 point on less than $3 million of trading on Tuesday.

AMC bonds dip

AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) racked up more than $19 million of secondary action on Tuesday, a source said.

The notes were about ½ point softer at around 66 bid.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) went out more than ¼ point lower at 79¼ bid in volume totaling more than $9 million on Tuesday.

The Leawood, Kan.-based movie theater owner’s stock (NYSE: AMC) fell 1.47% to $6.70.

Bausch flat to higher

Bausch Health Americas, Inc.’s 11% senior secured first-lien notes due 2028 (Caa1/CCC+/B) were trading 1¼ points better at 62¼ bid by the close on Tuesday, a source said.

Overall activity was light on more than $3 million of volume.

The 6 1/8% senior secured notes due 2027 (Caa1/CCC+/B) improved about ¼ point to 55½ bid in supply totaling over $1 million on Tuesday.

Bausch’s 8½% senior notes due 2027 (Ca/CCC-/C) were flat at around 49½ bid on less than $1 million of trading over the session.

The Laval, Quebec-based pharmaceutical company is conducting a search to replace its chief financial officer and handling other issues including a securities class action lawsuit over alleged violations of federal securities laws and concerns with its plans to spin off Bausch + Lomb Corp.

CommScope edges higher

CommScope, Inc.’s 8¼% senior notes due 2027 (Caa2/CCC-) were last seen in the secondary market on Tuesday at 46 7/8 bid, up 3/8 point from Monday, a source said.

Trading was light with volume totaling over $2 million in the issue.

The Hickory, N.C.-based network infrastructure manufacturer’s 4¾% senior secured notes due 2029 (B1/B) went out ½ point better at 63 bid in mostly odd lots.

Distressed index gains

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns finished Monday at 0.38%, up from zero on Friday and 0.22% in the same session last week.

Month-to-date total returns rose to 2.99% from 2.6% ahead of the weekend and 2.32% in the week-ago session.

Year-to-date distressed total returns climbed to 13.81% on Monday versus 13.38% on Friday and 13.02% in the same session a week earlier.

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