iHeart, Radiology Partners notes rocket higher; Rite Aid paper adds to recent gains

By Abigail W. Adams

Portland, Me., Nov. 15 – While the broader market was largely unchanged after the strong gains of the previous session, topical news continued to impact some distressed debt credits.

iHeartCommunications, Inc.’s 8 3/8% senior notes due 2027 (Caa1/CCC+) were among the largest gainers in the market on Wednesday after the media company announced a new partnership with U.K.-based Global.

Radiology Partners Inc.’s secured and unsecured notes also saw an outsized move to the upside in active trade.

Rite Aid Corp.’s senior notes were also on the rise in heavy volume as market players eye the recovery prospects of the notes.

iHeart gains

iHeart’s 8 3/8% senior notes due 2027 shot higher in heavy volume on Wednesday after the company announced a new podcast deal that will expand the company’s reach in the United Kingdom.

The 8 3/8% notes jumped 4 points to a 65-handle.

They were wrapped around 65½ heading into the market close, a source said.

The yield narrowed to 23½%.

There was $11 million in reported volume.

iHeart was in focus after the media company announced a new partnership with U.K-based radio and outdoor media company Global.

The deal gives each company the right to license and distribute their podcast portfolios and is expected to extend iHeart’s reach, a source said.

Radiology Partners higher

Radiology Partners’ secured and unsecured notes saw a large move to the upside on Wednesday.

The 5¼% senior secured notes due 2025 (B3/CCC+) jumped 4 points to close the day at 73½, a source said.

The yield narrowed to 21¾%.

There was $8 million in reported volume.

The 9¼% senior notes due 2028 (Caa3/CCC-) jumped 7 points to close the day in the 44½ to 45 context, a source said.

The yield shrunk to 35 5/8%.

There was also $8 million in reported volume.

Rite Aid active

Rite Aid’s senior notes continued to rise as market players assess the recovery prospects of the notes.

The 7½% senior secured notes due 2025 (WR/D) added almost 2 points in heavy volume.

They were trading at 74¼ heading into the market close, according to a market source.

There was $13 million in reported volume.

The 8% senior secured notes due 2026 added 2 points to close the day at 74¾.

There was $9 million in reported volume.

While Rite Aid’s secured notes were under pressure in the run up to the company’s October bankruptcy filing, the notes have made strong gains as Rite Aid has moved through the bankruptcy proceedings.

The recovery prospects for Rite Aid’s secured paper are high, a source said.

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