DISH bonds, CDS better; AMC declines; Coinbase drops; Rite Aid improves; iHeartMedia lower

By Cristal Cody

Tupelo, Miss., July 6 – DISH Network Corp.’s and AMC Entertainment Holdings, Inc.’s paper attracted the bulk of distressed secondary interest on Thursday.

DISH’s notes were trading about 1/8 point to more than 2 points better on the day in heavy secondary trading following news reports of a possible merger with Hughes Satellite Systems parent EchoStar Corp.

DISH’s credit default swap spreads also firmed more than 100 basis points this week.

Meanwhile, AMC Entertainment Holdings’ 10% senior secured second-lien notes due 2026 (Caa3/CCC-) slipped ¾ point in heavy secondary action on Thursday.

Coinbase Global, Inc.’s 3 3/8% senior notes due 2028 (B1/B) also fell close to 2 points on Thursday on more than $12 million of notes traded.

Equities stayed under pressure over the session as the Fear Factor index went out nearly 10% higher.

The Nasdaq closed down 0.82%.

The iShares iBoxx High Yield Corporate Bond ETF gave back 54 cents, or 0.73%, to $73.78.

The CBOE Volatility index rose 8.89% to 15.44.

Rite Aid Corp.’s 7.7% senior bonds due 2027 (Ca/CCC-/CC) were active in the secondary market on Thursday but little changed so far in July.

However, Rite Aid’s CDS spreads came in this week by nearly 1,700 bps after gapping out more than 2,000 bps last week.

iHeartCommunications, Inc. was the only distressed name seen with tighter CDS spreads this week and by the largest margin, according to a Moody’s report on Thursday.

The company’s CDS spreads were nearly 50 bps tighter.

iHeartCommunications’ 8 3/8% senior notes due 2027 (Caa1/B-) traded down more than 1 point over the session.

DISH on the move higher

DISH’s 5 1/8% senior notes due 2029 (B3/B-) went out more than 1 point higher on Thursday and trading on a high 47 bid handle, a source said.

Secondary action was strong with more than $16 million of notes changing hands.

DISH DBS Corp.’s 7¾% senior notes due 2026 (B3/B-) rallied 2¾ points to hit 64 bid on $6.8 million of secondary action over the day.

The 7 3/8% senior notes due 2028 (B3/B-) also were up 2 points at 56 bid on about $4 million of volume.

DISH’s CDS spreads improved more than 100 bps this week.

DISH Network’s CDS spreads tightened 126 bps to 2,037 bps for the week ended Wednesday, Moody’s said.

DISH DBS’ CDS spreads firmed 125 bps to 2,350 bps in the past week.

The Englewood, Colo.-based satellite cable operator’s stock (Nasdaq: DISH) edged up 0.74% on Thursday to $6.81.

AMC bonds drop

AMC Entertainment’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) fell ¾ point to 70¼ bid on nearly $15 million of trading supply during the session, a source said.

A settlement hearing was scheduled last week in the Delaware Court of Chancery to resolve a shareholder lawsuit brought by Allegheny County Employees’ Retirement System over AMC’s issuance of preferred stock.

The Leawood, Kan.-based movie theater owner’s common stock (NYSE: AMC) finished Thursday 0.94% higher at $4.29.

AMC’s preferred stock (NYSE: APE) rose 2.89% on the day to $1.78.

Coinbase slips lower

Coinbase’s 3 3/8% senior notes due 2028 (B1/B) fell close to 2 points on Thursday to a 64 bid handle on more than $12 million of notes traded, a source said.

The bonds were up slightly from where the paper traded on June 6 at 60¼ bid after the Securities and Exchange Commission announced it charged the crypto company with operating as an unregistered national securities exchange, broker and clearing agency.

Coinbase’s paper had initially declined about 2¾ points to 4 points on about $70 million of volume in that session.

Coinbase’s stock (Nasdaq: COIN) fell 0.32% to $78.10 on Thursday but has rallied back from the low 50s following the SEC announcement.

The SEC’s complaint filed in the U.S. District Court for the Southern District of New York alleges Coinbase violated certain registration provisions of the Securities Exchange Act of 1934 and securities offering registration provisions of the Securities Act of 1933.

Rite Aid improves

Rite Aid’s 7.7% senior bonds due 2027 (Ca/CCC-/CC) were quoted on Thursday around 26¾ bid on $4 million of secondary supply, a source said.

The bonds were little changed from where the issue traded in mid-June at 26 bid, 27 offered

Meanwhile, Rite Aid’s CDS spreads tightened 1,671 bps this week ended Wednesday to 7,818 bps in the first period after the company posted quarterly earnings results, Moody’s said.

Spreads had widened 2,151 bps in the prior week to 9,489 bps.

A week ago, Rite Aid reported weaker fiscal 2024 first-quarter revenue and higher quarterly losses, while also reducing its adjusted EBITDA guidance for fiscal 2024 and projecting a fiscal year net loss of $650 million to $680 million.

The Camp Hill, Pa.-based drugstore chain’s stock (NYSE: RAD) closed Thursday up 6.16% at $1.55.

iHeart paper dips

iHeartCommunications’ 8 3/8% senior notes due 2027 (Caa1/B-) fell more than 1 point in active trading totaling $7.2 million on Thursday, a source said.

The bonds were quoted around 65½ bid.

iHeartCommunications’ CDS spreads firmed 47 bps for the week ended Wednesday to 1,771 bps, according to Moody’s.

The San Antonio-based media broadcasting company’s stock (Nasdaq: IHRT) rose 1.07% to $3.77 on Thursday.

Distressed returns lower

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns softened Wednesday to 0.05% from 0.12% in the early holiday session on Monday.

Month-to-date total returns for July through Wednesday totaled 0.18%.

Year-to-date distressed total returns were up at 11.82% in the prior session versus 11.76% on Monday.

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