Party City notes steady; Shutterfly paper drops; Embarq declines; Carvana, Qurate gain

By Cristal Cody

Tupelo, Miss., Jan. 24 – Party City Holdings Inc.’s 8¾% senior secured notes due 2026 (Caa3/D/C) held steady in the secondary market on Tuesday, a week after the retailer filed for Chapter 11 bankruptcy.

The issue was yielding more than 82%.

Shutterfly LLC’s 8½% senior secured notes due 2026 (B2/CCC) were among the day’s biggest losers with the issue sinking 8 points, a source said.

Stocks mostly declined while volatility was lower on the day.

The iShares iBoxx High Yield Corporate Bond ETF picked up 5 cents, or 0.07%, to $76.21.

The CBOE Volatility index fell 3.08% to $19.20.

Embarq Corp.’s 7.995% notes due 2036 (Caa2/CCC/CCC) dropped about 2½ points by the close.

Carvana Co.’s 10¼% senior notes due 2030 (Caa2/CCC) went out more than 1 point better in light trading.

Qurate Retail Inc.’s 8½% senior debentures due 2029 (B3/CCC) were 1¼ points higher on Tuesday, but volume was thin.

Party City active

Party City’s 8¾% senior secured notes due 2026 (Caa3/D/C) traded steady around 21 bid by the close on Tuesday on $5 million of volume, a source said.

The bonds were last quoted trading on Thursday at 21¼ bid, up from 19¼ bid in the prior session.

Parent Party City Holdco Inc. and some of its subsidiaries filed for Chapter 11 bankruptcy on Jan. 17 in the U.S. Bankruptcy Court for the Southern District of Texas.

The Woodcliff, N.J.-based party goods retailer’s bankruptcy is the first of 2023.

Shutterfly under pressure

Shutterfly’s 8½% senior secured first-lien notes due 2026 (B2/CCC) sank 8 points on Tuesday on $3.3 million of secondary action, a market source said.

The notes were quoted at 46¾ bid.

Shutterfly’s notes have given back nearly 20 points since October.

The bonds were issued in a $785 million offering in October 2019 at 94.37 to yield 9 5/8% to fund the company’s buyout by Apollo Global Management LLC.

Shutterfly is a Redwood City, Calif.-based retailer and manufacturing platform for photos and personalized products.

Embarq lower

Embarq’s 7.995% notes due 2036 (Caa2/CCC/CCC) gave back about 2½ points over the session to go out at 47½ bid, a source said.

Secondary supply hit $5 million.

The bonds have dropped nearly 5 points over the past week but were mostly unchanged from mid-December trading at the 47 bid area.

The Overland Park, Kan.-based telecommunications company was acquired in 2022 by Connect Holding II LLC, doing business as Brightspeed, from Lumen Technologies, Inc.

Carvana gains

Carvana’s 10¼% senior notes due 2030 (Caa2/CCC) went out up more than 1 point at 47 bid on Tuesday, a market source said.

Trading was on the light side with $2 million of volume reported.

Carvana's 5 5/8% notes due 2025 (Caa2/CCC) were quoted going out at 44½ bid on $3 million of paper changing hands.

Carvana's paper and stock were under pressure in December after its target stock price was cut to $1 by Wedbush Securities on growing chances of a restructuring.

The Phoenix-based online car retailer’s stock closed Tuesday down 7.33% at $6.64.

Qurate trades higher

Qurate Retail’s 8½% senior debentures due 2029 (B3/CCC) saw gains on Tuesday but on trading of less than $1 million, a source said.

The issue was 1¼ points better at 49 bid.

The notes from Qurate, formerly known as Liberty Interactive Corp., were down about 1 point from Thursday.

The West Chester, Pa.-based home shopping network owner’s credit default swap spreads moved out 800 basis points over December and through mid-January.

Distressed index up

S&P U.S. High Yield Corporate Distressed Bond index one-day returns kicked off Monday higher at 0.29%, compared to 0.03% on Friday.

Month-, quarter- and year-to-date total returns improved to 7.31% from 7% ahead of the weekend.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.