DISH Network notes gain in trading; AMC paper under pressure; Staples climbs higher

By Abigail W. Adams

Portland, Me., Jan. 4 – The distressed debt space remained soft on Thursday after a heavy start to the year with investors fleeing weak credits ahead of an expected economic downturn.

The S&P U.S. High Yield Corporate Distressed Bond index’s year-to-date return was already negative 1.47% after a 0.89% decline on Wednesday with losses outpacing the broader market.

While the space remained soft on Thursday, selling pressure moderated with buyers returning for certain credits, a source said.

DISH Network Corp.’s senior notes (Caa2/B-) were on the rise in heavy volume after a mixed response to the completion of the DISH/EchoStar merger earlier in the week.

Staples Inc.’s senior notes were also lifted in active trade on a strong day for the retail sector.

However, AMC Entertainment Holdings, Inc.’s senior notes were under pressure as stock plunged to a new record low with the company’s viability again in doubt.

DISH rises

DISH’s senior notes were again in focus on Thursday with the notes on the rise after a mixed response to the completion of the DISH/EchoStar merger earlier in the week.

The soon-to-mature 5 7/8% senior notes due Nov. 15, 2024 continued to add to their gains.

The notes were up about ¼ point to trade in the 94½ to 95 context, a source said.

The yield was about 12 7/8%.

There was $26 million in reported volume.

While DISH’s longer-duration notes were under pressure earlier in the week, the 2024 notes gained with the merger increasing the probability of their payoff at maturity.

DISH’s 7¾% notes due 2026 added about ½ point to close the day at 68¾ with the yield about 25½%.

There was $20 million in reported volume.

The 5 1/8% senior notes due 2029 added ¼ point to close the day at 49¼ with the yield 21 3/8%.

There was $7 million in reported volume.

While DISH’s soon-to-mature notes benefited from the EchoStar merger, its longer duration notes were under pressure with the merger not enough to ensure the future viability of the heavily leveraged company.

Staples higher

Staples’ senior notes drifted higher on Thursday on a relatively strong day for the retail sector.

The 10¾% senior notes due 2027 (Caa2/CCC) added ¼ to ½ point, a source said.

They closed the day at 72¾ with the yield about 23%.

There was $4 million in reported volume.

Staples’ 7½% senior secured notes due 2026 (B3/B) added ½ point to close the day wrapped around 93.

The yield was about 11%.

There was $13 million in reported volume.

Several retail names were lifted on Thursday with economic data continuing to point to an uptick in consumer spending.

AMC under pressure

AMC’s senior notes were under pressure on Thursday as stock again set a new record low.

The 10% senior secured second-lien notes due 2026 (Caa3/CCC-) sank 3 points to close the day at 81¾, a source said.

The yield rose to about 19 7/8%.

There was $13 million in reported volume.

The 7½% senior secured first-lien notes due 2029 (Caa1/B-) were off ½ point to close the day at 67 with the yield about 17½%.

AMC’s stock sank to a new record low close of $5.30, a decrease of 5.02%, on Thursday.

Stock has plunged more than 14% over the past week as market players again question the company’s viability.

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