Embarq slides, CDS spreads widen; Rite Aid notes, CDS spreads soften; Qurate, QVC down

By Cristal Cody

Tupelo, Miss., Sept. 22 – Embarq Corp.’s paper remained weak on Thursday with the notes now giving back more than 24 points over the first four sessions of the week.

Embarq’s 7.995% notes due 2036 (Caa2/BB/BB) dropped over 6 points on Thursday to 50 bid on $14 million of paper traded, a source said.

The company’s credit default swap spreads also widened nearly 100 basis points for the past week ended Wednesday.

Meanwhile, Rite Aid Corp.’s 8% senior secured notes due 2026 (B3/CCC-/BB-) came under continued pressure on Thursday with the issue down more than 2 points in the secondary market.

The bonds were quoted at 79 bid on more than $4 million of paper traded, a source said.

Rite Aid’s CDS spreads also moved out more than 200 bps this week.

In other distressed retail paper, home shopping network owner QVC Inc.’s 4 3/8% senior secured notes due 2028 (Ba2/BB) declined 3¾ points to 69½ bid, a source said.

Secondary supply totaled more than $6 million during the session.

Parent company Qurate Retail Inc.’s 8½% senior debentures due 2029 (B2/B-) also slid over 4 points to the 68 bid range on Thursday in trading totaling less than $1 million.

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