Altice, CSC bonds extend losses as paper dominates secondary; DISH under more pressure

By Cristal Cody

Tupelo, Miss., March 21 – Bonds affiliated with Altice France Holding Restricted Group and subsidiaries dominated the secondary market as investors weighed comments from Wednesday’s earnings conference call and news reports the company is engaged with financial and legal advisers.

The bonds saw wide swings lower on Wednesday and dropped around 2 points to 15 more points on Thursday.

Altice France Holding SA’s 10½% senior notes due 2027 (Caa2/CCC) have plunged over 30 points in the last two sessions.

Credit default swap spreads in cable names widened this week.

Altice subsidiary CSC Holdings, LLC’s CDS spreads eased 130 basis points.

CDS spreads from EchoStar Corp. subsidiaries DISH DBS Corp. and DISH Network Corp. moved out over 170 bps.

Securities from DISH were higher but saw light trading on Thursday as Altice’s bonds crowded the market, a source said.

DISH DBS’ 7¾% senior notes due 2026 (Caa3/CC) improved 1¼ points over the day.

Forecasts for the first rate cut by the Federal Reserve began again after the Fed left the Federal Funds rate unchanged at 5¼% to 5½% on Wednesday.

“Fed officials signaled a more dovish reaction function at the March FOMC meeting, sticking with a median projection of three rate cuts this year despite higher growth and inflation forecasts,” BNP Paribas Securities analysts said in a note on Thursday. “The outcome makes us more confident in our expectation for the first cut to come in June.”

Stocks ramped higher over the day, and measured market volatility moved below a 13 handle.

The iShares iBoxx High Yield Corporate Bond ETF fell 4 cents, or 0.05%, to $77.78.

The CBOE Volatility index declined 0.92% to 12.92.

Altice, CSC trade down

Altice France Holding’s 10½% senior notes due 2027 (Caa2/CCC) dropped 15 points to head out at 38 bid with a 53.02% yield on $91 million of paper traded on Thursday, a source said.

The drop followed Wednesday’s plunge when the issue shed 18 points to hit 54½ bid with a 35.63% yield on $40 million of volume.

Altice France Holding’s 6% senior notes due 2028 (Caa2/CCC) slid all the way to 29½ bid by the close on $26 million of notes traded. The bonds were down 14 points and the yield was 47.14%.

On Wednesday, the issue gave back 15 7/8 points to 43½ bid with a 32.61% yield on $18 million of trading.

Also Thursday, Altice France SA’s 8 1/8% senior secured notes due 2027 (B2/B-) fell 7¼ points to 77½ bid with an 18.6% yield on $60 million of secondary action.

Altice Financing SA’s 5¾% senior secured notes due 2029 (B3/B) declined 6¾ points to 75¾ bid and an 11.98% yield on $43 million of activity.

Altice USA, Inc. subsidiary CSC Holdings’ 7½% senior notes due 2028 (Caa2/CCC) went out 3¾ points lower at 66¼ bid with a 20.15% yield on $8 million of volume.

CSC’s CDS spreads widened 130 bps over the week ended Wednesday to 1,536 bps, according to a Moody’s Ratings report.

Altice France on Wednesday reported fiscal 2023 results and announced a strong focus on deleveraging the balance sheet with total pro forma net debt of €24.3 billion at the end of the fourth quarter.

The company reported March 15 that it will sell Altice Media for €1.55 billion to the CMA CGM Group and Merit France. Prior to the announcement, Altice France said it designated Altice Media as an unrestricted subsidiary under its financing documentation.

Altice France also announced March 14 that it completed tender offers for €218.83 million of its outstanding January 2025 and February 2025 notes.

Altice USA bonds also have been volatile this year on continued market chatter that Charter Communications Inc. may acquire the New York-based broadband communications company.

DISH bonds up

DISH DBS’ 7¾% senior notes due 2026 (Caa3/CC) climbed 1¼ points on Thursday to 68¼ bid in light secondary activity, a source said.

DISH’s 5 1/8% senior notes due 2029 also traded over 1 point better at 43¾ bid in thin supply.

Meanwhile, DISH DBS’ CDS spreads eased 171 bps for the week ended Wednesday to 2,883 bps, according to a Moody’s report.

CDS spreads were 138 bps wider in the prior week.

DISH Network’s CDS spreads also widened 230 bps over the period to 2,435 bps, Moody’s said.

The company’s CDS spreads were 112 bps wider a week earlier.

EchoStar reported heavy fiscal 2023 losses in February following failed DISH bond exchange offers for four tranches of notes in January and two tranches of convertible bonds in February, and independent auditor KPMG LLP announced doubt about the company’s ability to continue as a going concern.

EchoStar closed on its acquisition of DISH in December.

Chief executive officer Hamid Akhavan reported in February the company is seeking funding to cover $1.98 billion of debt that matures in November.

EchoStar said it will meet its obligations due in March, which includes $951 million of debt. The company also has a $3.59 billion payment due April 1 to T-Mobile US Inc. for its 800 MHz spectrum licenses.

Englewood, Colo.-based satellite owner EchoStar owns companies that include DISH, HughesNet, Boost Mobile and Sling TV.

Distressed index declines

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns have been volatile week to date with returns down to 0.06% on Wednesday after improving on Tuesday to 0.19% from minus 0.13% on Monday.

Month-to-date total returns rose to 1.49% midweek, compared to 1.44% on Tuesday and 1.24% at the start of the week.

Year-to-date total returns were higher on Wednesday at 4.15% versus 4.09% on Tuesday and 3.89% on Monday.

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