Altice notes mostly soften; DISH bonds edge higher; Lumen, Level 3 mixed on exchange

By Cristal Cody

Tupelo, Miss., March 22 – Bonds affiliated with Altice France Holding Restricted Group and subsidiaries mostly softened on Friday in heavy trading but pulled back from the double-digit losses seen Wednesday and Thursday on reports the company is engaged with financial and legal advisers.

Altice France Holding SA’s 10½% senior notes due 2027 (Caa2/CCC) shed 2½ points on $56 million of notes changing hands by late afternoon.

The bonds gave back over 30 points in the prior two sessions.

Cable bonds were among the week’s most active bonds and mostly under pressure, sources said.

DISH DBS Corp.’s distressed bonds picked up ¼ point in light trading over the session.

Lumen Technologies, Inc.’s paper edged higher in light trading following the company’s announcement that it completed transactions under its amended and restated transaction support agreement and a subsequent downgrade from S&P Global Ratings to selected default.

Bonds from subsidiary Level 3 Financing, Inc. were mixed.

Junk bond defaults are tracking “a lot lower” than loan defaults so far this year, at $2 billion versus around $10 billion, according to a BofA Securities research note on Friday.

Market tone overall softened on Friday with stock indices mostly lower.

The S&P 500 index declined 0.14%.

The iShares iBoxx High Yield Corporate Bond ETF fell 8 cents, or 0.1%, to $77.70.

The CBOE Volatility index increased 1.08% to 13.06.

Altice extends declines

Altice France’s 10½% senior notes due 2027 (Caa2/CCC) moved down 2½ points to 38 bid going into the close on $56 million of secondary volume, a source reported.

The bonds were yielding over 53%.

Altice’s paper has been under heavy selling pressure since the company released earnings on Wednesday.

The issue traded Thursday down 15 points on $91 million of supply and slid 18 points on Wednesday on $40 million of volume.

Altice France’s 6% senior notes due 2028 (Caa2/CCC) saw strong secondary action on Friday with $45 million of notes traded.

The bonds were down 2¾ points at 28¾ bid and a 48.2% yield.

Midweek, the issue declined 15 7/8 points on $18 million of volume and fell 14 points on Thursday on $26 million of notes traded.

Altice USA’s 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 slightly better

DISH DBS’ 7¾% senior notes due 2026 (Caa3/CC) rose ¼ point to 68½ bid in light trading that totaled around $2 million on Friday, a source said.

The bonds had climbed 1¼ points on Thursday to 68¼ bid.

Parent EchoStar Corp. 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 after independent auditor KPMG LLP announced doubt about the company’s ability to continue as a going concern.

EchoStar is seeking funding to cover $1.98 billion of debt that matures in November but expects to meet its $951 million of obligations due in March. 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.

Level 3 higher

Lumen’s 4% senior secured notes due 2027 (Caa3/D) traded Friday near the 62 bid area in mostly light activity that topped $4 million, a source said.

Levels 3 Financing’s 4 5/8% senior notes due 2027 (Caa2/D) were quoted at 68¼ bid on $6 million of volume and about 1¼ points higher on the week.

Lumen’s bonds have been volatile since it reported in January an amended transaction support agreement reached with a majority group of creditors.

The Monroe, La.-based global telecommunications company announced on Friday that it completed the transactions under the agreement that Lumen, Level 3 and Qwest Corp. entered into with certain creditors.

Lumen said that it closed a new approximately $1 billion revolving credit facility due in June 2028 and completed the private placement of $1.325 billion aggregate principal amount of senior secured notes due November 2029.

Lumen reported its near-term debt maturity profile has “significantly improved” with the amount of maturities outstanding for 2025 to 2026 reduced to approximately $600 million from approximately $2.1 billion and total maturities outstanding for 2027 reduced to around $800 million from around $9.5 billion.

S&P downgraded Lumen and dropped the bonds to D from CC following the completion of the debt restructuring, which it views as tantamount to a default.

S&P noted Lumen exchanged a portion of the outstanding senior secured and unsecured debt at the company and Level 3 Financing for new debt with a senior ranking, higher coupons, fees and tighter covenants.

Distressed returns dive

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns dove to negative 1.39% on Thursday.

One-day returns were 0.06% on Wednesday, 0.19% on Tuesday and minus 0.13% on Monday.

Month-to-date total returns dropped to 0.09% from 1.49% on Wednesday, 1.44% on Tuesday and 1.24% at the week’s start.

Year-to-date total returns fell to 2.71% on Thursday, compared to 4.15% midweek, 4.09% on Tuesday and 3.89% on Monday.

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