AMC notes attract favor; Rite Aid up on bankruptcy reports; Michaels extends weakness

By Cristal Cody

Tupelo, Miss., Sept. 25 – Distressed trading supply stayed fairly quiet Monday with activity mostly subdued, according to market sources.

AMC Entertainment Holdings, Inc.’s notes bulked up by 3/8 point to over ¾ point in some of the busiest issues, a source said.

AMC’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) went out over ¾ point better at 69½ bid in the session’s most active issue on over $11 million of paper traded.

Rite Aid Corp.’s stock sank 34% on Monday, while its distressed bonds rallied in the first session after the Wall Street Journal reported late Friday that the drugstore chain is negotiating with creditors over the terms of a bankruptcy plan.

A bankruptcy filing “wouldn’t surprise me,” a source said Monday. “The 8% of 2026 are trading at 60 cents on the dollar and that’s a first lien. A lot of these retailers have struggled.”

Rite Aid’s 8% senior secured notes due 2026 (Caa3/CCC-/B) were quoted up 1 point at 61¼ bid by the close.

Also in the distressed retail space, Michaels Cos, Inc.’s 7 7/8% senior notes due 2029 (Caa2/CCC) shed more than ¾ point to head out with a 66 bid handle on $3.5 million of secondary supply, a source said.

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