Carvana paper bounces back, stock jumps; Party City drops; Rite Aid notes, CDS soft

By Cristal Cody

Tupelo, Miss., Dec. 8 – Carvana Co.’s notes recovered nearly ½ point to 3 5/8 points in busy trading action on Thursday after softening as much as 3 points in the prior session, while its stock also bounced back by nearly 30%.

Carvana's 5 5/8% notes due 2025 (Caa2/CCC) climbed 3 5/8 points to 46 bid on $10.97 million of volume, a source said.

The bonds were seen 3 points weaker on Wednesday on $9 million of secondary supply.

Carvana’s stock also rallied 29½% by the close after sinking more than 40% on Wednesday following growing restructuring chatter and after its stock price outlook was cut to $1 by an analyst.

Meanwhile, Party City Holdings Inc.’s 8¾% senior secured notes due 2026 (Caa1/CCC+) slid further into distressed trading with the bonds down 6½ points on Thursday, a source said.

The notes went out at 30½ bid on more than $13.6 million of volume.

Rite Aid Corp. was heading toward the weekend softer with its bonds lower and its credit default swap spreads just south of 500 basis points wider on the week, sources said.

Rite Aid’s 7.7% senior bonds due 2027 (Caa2/CCC-/CCC) fell about 2 points to around 48½ bid on $1.5 million of trading.

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