DISH bonds stronger; iHeartCommunications’ secured notes rally; Enviva paper unchanged

By Cristal Cody

Tupelo, Miss., Dec. 13 – Two tranches of bonds from DISH Network Corp. climbed over ½ point to more than 1¼ points on nearly $30 million of trading by the session’s wrap on Wednesday.

The 7¾% senior notes due 2026 (Caa2/B-) were more than 1 point higher on volume that topped $12 million after DISH reported it expects to close its merger with EchoStar Corp. as soon as this week.

DISH’s paper has been on an upswing since last week after the company cleared regulatory hurdles to complete the merger.

The 7¾% senior notes due 2026 have added about 5 points since the Dec. 6 announcement.

iHeartCommunications, Inc.’s paper went out mixed after modest gains in the prior session following news that Liberty Media Corp. and Sirius XM Holdings Inc. will merge to create a new public media firm.

The company’s 6 3/8% senior secured notes due 2026 (Caa1/B+) climbed 2¼ points and were trading more than 3 points better week to date.

iHeartCommunications’ 8 3/8% senior notes due 2027 (Caa3/CCC+) slipped about ½ point over the day and have dropped about 1½ points since Monday.

Stocks shot up after the Federal Reserve left rates unchanged following its policy meeting on Wednesday.

The S&P 500 index closed up 1.37%.

The iShares iBoxx High Yield Corporate Bond ETF jumped $1.16, or 1.53%, to $77.14.

The CBOE Volatility index was 0.99% higher at 12.19.

In other distressed paper, Enviva Partners, LP’s 6½% senior notes due 2026 (Caa2/CC/CC) have settled in the 40s range since plunging more than 40 points in November.

The bonds were active on Wednesday but unchanged on the day.

DISH gains on merger

DISH DBS Corp.’s 7¾% senior notes due 2026 (Caa2/B-) traded more than 1¼ points better on Wednesday at 66½ bid on $12.1 million of secondary supply, a source said.

In the same session a week ago ahead of the regulatory announcement, the bonds traded at 61½ bid.

DISH’s short-dated 5 7/8% senior notes due Nov. 15, 2024 (Caa2/B-) saw the heaviest trading volume over the session with $17.5 million of notes changing hands. The bonds were quoted more than ½ point better with a 92 handle.

The U.S. Federal Communications Commission announced a week ago that it approved the transfer of control of DISH Network and its subsidiaries to EchoStar.

Both public companies are controlled by majority shareholder Charles W. Ergen.

DISH reported in a regulatory filing on Tuesday that it expects to close the merger as early as this week or by Dec. 29.

The Englewood, Colo.-based satellite cable operator announced the merger in August.

iHeartMedia mixed

iHeartCommunications’ 8 3/8% senior notes due 2027 (Caa3/CCC+) slipped about ½ point on Wednesday to around 58½ bid on $7.2 million of paper moving in the distressed market, a source reported.

The bonds have dropped about 1½ points since Monday and gave back 3 points on Friday.

Meanwhile Wednesday, iHeartCommunications’ 6 3/8% senior secured notes due 2026 (Caa1/B+) climbed 2¼ points in stronger volume totaling $7.52 million. The bonds were quoted at 83 bid.

The issue rallied 1 1/8 points on Tuesday to a quote of 80¾ bid after slipping 1/8 point on Monday and 3¾ points on Friday.

The subsidiary of San Antonio-based parent media broadcasting company iHeartMedia, Inc. has around $3.1 billion of debt maturities due in 2026 and $1.7 billion due in 2027.

In the prior week, Moody’s Investors Service downgraded iHeartCommunications based on increasing refinancing risks and elevated financial leverage from a decline in radio advertising demand.

Enviva bonds flat

Enviva Partners’ 6½% senior notes due 2026 (Caa2/CC/CC) traded on Wednesday unchanged on the day at 48¼ bid on $6 million of secondary activity, a source reported.

The bonds were yielding over 48%.

Enviva’s bonds dropped more than 40 points in November after the issuer reported heavy third-quarter losses and doubt about its ability to continue as a going concern.

The Bethesda, Md.-based industrial wood pellets manufacturer’s stock (NYSE: EVA) jumped 12.15% on Wednesday to $1.20.

Distressed returns rise

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns climbed to 0.38% on Tuesday from 0.14% at the start of the week.

Month-to-date total returns improved in the prior session to 2.43% from 2.04% on Monday.

Year-to-date distressed total returns also rose to 17.82% from 17.37% at the week’s start.

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