AMC, Wesco bonds trade mixed; Exela higher; Envision rallies; Air Methods declines

By Cristal Cody

Tupelo, Miss., Feb. 2 – Secondary trading volume soared to over $46 million Wednesday in AMC Entertainment Holdings, Inc.’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) as the company priced a new secured issue.

AMC’s 10% notes fell 1/8 point.

Wesco Aircraft Holdings Inc.’s secured notes were among the day’s most active distressed issues with the 9% senior secured notes due 2026 (Caa3/CCC+) up 1 point on $18 million of paper changing hands.

In other supply, Exela Technologies, Inc.’s 11½% first priority senior secured notes due 2026 (Caa3/CCC-) were 2¼ points stronger on the day.

Envision Healthcare Corp.’s 8¾% senior notes due 2026 (Ca/CCC-) rose another 2 points after picking up 5¼ points on Tuesday.

Air Methods Corp.’s 8% senior notes due 2025 (Caa2/CCC) dropped 2¼ points.

Junk market tone was stronger on Wednesday with the iShares iBoxx High Yield Corporate Bond ETF up 13 cents to $84.86.

Distressed energy paper was stronger as oil edged up over the session.

Transocean Inc.’s 7¼% senior notes due 2025 (Ca/CCC) traded 2¼ points better at 80½ bid on over $5 million of volume, a source reported.

PBF Energy Inc.’s notes picked up about 1¾ points to 2¼ points during the session.

West Texas Intermediate crude oil benchmark futures for March deliveries rose 6 cents to settle at $88.26 a barrel.

AMC paper mixed

AMC’s paper was mixed on Wednesday after the company’s new bond offering and an upgrade from Moody’s Investors Service, a source said.

The 10% senior secured second-lien notes due 2026 (Caa3/CCC-) fell 1/8 point to 96 3/8 bid on $46.1 million of trading by the close.

During Tuesday’s session, the 10% notes were up nearly 2¾ points on $39 million of volume.

AMC’s 5¾% senior subordinated notes due 2025 (Ca/CCC-) rallied 3 5/8 points to 78 7/8 bid on lighter secondary supply totaling $1.75 million on Wednesday.

The Leawood, Kan.-based movie theater owner sold $950 million of seven-year first-lien notes at par to yield 7½% on Wednesday with proceeds slated to redeem the $500 million outstanding of its 10½% senior secured first-lien notes due 2025.

Moody’s upgraded the issuer and the company’s secured notes on Wednesday.

On Tuesday, AMC reported strong preliminary fourth-quarter results in advance of potential investor meetings.

AMC’s chief executive officer announced at the start of January that the company is considering refinancing debt in 2022.

Wesco active

Wesco’s 9% senior secured notes due 2026 (Caa3/CCC+) headed out up 1 point to 84¾ bid in an active session that saw $18 million of paper changing hands, a source said.

Meanwhile, the company’s 8½% senior secured notes due 2024 (Caa3/CCC+) fell over 1½ points to 84½ bid during the session. Secondary volume totaled $14 million in the issue.

The Fort Worth-based aerospace supplier sold the notes via Wolverine Escrow LLC.

Wesco was acquired in 2020 by an affiliate of investment firm Platinum Equity and combined with U.K.-based aerospace and defense industry supplier Pattonair Ltd., now doing business as Incora.

Exela improves

Exela Technologies’ 11½% first priority senior secured notes due 2026 (Caa3/CCC-) rose 2¼ points to 65¾ bid on $5 million of secondary supply on Wednesday, a source said.

The issue is trading about 3¼ points stronger since Friday.

Exela announced on Jan. 26 an offer to exchange up to 100 million shares of common stock for up to $100 million of new 6% senior notes due 2029.

The Irving, Tex.-based software and services company exchanged the bulk of its 10% senior secured first-lien notes due 2023 (Caa3/CCC-) in December for the new 11½% first priority senior secured notes due 2026.

Envision gains

In distressed health care paper, Envision Healthcare’s 8¾% senior notes due 2026 (Ca/CCC-) rallied another 2 points on Wednesday after picking up 5¼ points the prior day, according to a market source.

The notes were quoted at 59¼ bid on $4.5 million of volume on Wednesday.

On Tuesday, the issue climbed 5¼ points on $3 million of supply.

Nashville-based Envision is a health care company and hospital-based physician group.

Air Methods lower

In other health care services’ paper, Air Methods’ 8% senior notes due 2025 (Caa2/CCC) declined 2¼ points to 79 bid on $1 million of supply, a source reported.

The notes from the ASP AMC Holdings Inc. unit have traded in the distressed space since sliding from the 94½ bid range in October.

The New York-based ambulance service provider issued the notes via ASP AMC Merger Sub Inc.

PBF improves

PBF’s 6% senior notes due 2028 (Caa1/B/B-) were quoted 2¼ points higher on Wednesday at 74¼ bid.

More than $10.25 million of paper was traded, a market source said.

The Parsippany, N.J.-based petroleum refiner’s 7¼% senior notes due 2025 (Caa1/B/B-) also rose about 1¾ points to 83 bid on lighter volume totaling $8 million during the session.

Distressed index positive

Distressed returns have been positive over the first two sessions of the week.

The S&P U.S. High Yield Corporate Distressed Bond index’s one-day total return was 0.5% on Tuesday, compared to 0.66% on Monday and minus 1.26% on Friday.

Year-to-date returns improved to minus 1.03% in the prior session from minus 1.53% on Monday and minus 2.18% on Friday.

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