Rite Aid bonds rebound, CDS spreads gap out; Staples improves; Level 3 higher

By Cristal Cody

Tupelo, Miss., July 13 – Rite Aid Corp.’s bonds saw a rebound on Thursday after the paper slid about 1¾ points to 9 points in the previous session.

Rite Aid’s 8% senior secured notes due 2026 (Caa3/CCC-/B) rose 2½ points to 43 bid on $5 million of volume, a source said.

Meanwhile, Rite Aid’s credit default swap spreads gapped out more than 2,700 basis points to over 10,000 bps this week.

Distressed retail paper saw mostly gains on Thursday in strong trading activity after positive economic data releases over the morning.

Staples Inc.’s 10¾% senior notes due 2027 (Caa2/CCC+) traded 1½ points better at a print of 60.96 on $16.1 million of secondary action, a source said.

Staples’ CDS spreads also firmed nearly 60 bps this week.

Level 3 Financing, Inc.’s notes continued to improve with the issuer’s bonds seen trading more than 2 points better on the day.

Level 3 Financing’s 4 5/8% senior notes due 2027 (B1/B/B+) added 2 7/8 points to head out at 75 5/8 bid on $5 million of trading, a source said.

Parent Lumen Technologies, Inc.’s CDS spreads eased more than 225 bps over the week.

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