DISH mixed following post-earnings sell-off; Sinclair, Clear Channel under pressure

By Abigail W. Adams

Portland, Me., May 9 – It was another soft day for the distressed debt space with the risk-off sentiment of the previous session lingering as debt-limit negotiations commence in Washington and market players await Wednesday’s release of the Consumer Price Index.

While the market was weak, activity remained muted with few making moves amid continued uncertainty and indecision.

“It’s pretty iffy,” a source said.

While activity in the broader market was muted, earnings-related news continued to spark strong movement in certain credits.

DISH Network Corp.’s senior notes were mixed in heavy volume with some issues leveling off while others continued their post-earnings downtrend.

Sinclair Television Group Inc.’s senior notes were under pressure in active trade on Tuesday after reporting earnings the previous week.

Clear Channel Outdoor Holdings, Inc.’s 7¾% senior notes due 2028 (Caa2/CCC) also sank after an earnings miss.

DISH mixed

DISH’s senior notes were mixed in heavy volume on Tuesday following the post-earnings sell-off the previous session.

While some notes found their level, others continued to fall.

DISH’s soon-to-mature 5 7/8% senior notes due Nov. 15, 2024 (B3/B-) remained wrapped around 80½ with the yield 21 5/8%, a source said.

While unchanged the notes continued to see heavy volume with $21 million on the tape.

The 7 3/8% senior notes due 2028 (B3/B-) were slightly softer with the notes shaving off another ¼ point.

However, they remained on a 44-handle and were changing hands in the 44 1/8 to 44 3/8 context in the late afternoon.

The yield was 28¾%.

There was $12 million in reported volume.

DISH’s 7¾% senior notes due 2026 (B3/B-) continued their strong downtrend with the notes falling another 1½ points to close the day wrapped around 50.

The yield rose to 35 3/8%.

There was $21 million in reported volume.

Sinclair under pressure

Sinclair’s senior notes were under pressure on Tuesday with the notes the largest losers in the space.

The television broadcaster’s 4 1/8% senior secured notes due 2030 (Ba2/BB-) sank 3¾ points to close the day at 68¼, a source said.

The yield rose to 10¼%.

There was $11 million in reported volume.

Tuesday’s price drop was the largest single day decline for the notes in their history, a source said.

Sinclair’s 5½% senior notes due 2030 (B2/B-) sank 3 points to close at 63¾% with the yield 13 7/8%.

There was $6.5 million in reported volume.

Sinclair reported earnings the previous week with revenue forecasts missing estimates.

The notes may also have a heavy short with hedge funds leaning in on them on Tuesday, a source said.

Clear Channel down

Clear Channel’s 7¾% senior notes due 2028 were under pressure in heavy volume on Tuesday following earnings.

The notes sank 2¾ points to close the day at 72½.

The yield rose to 16%.

There was $13 million in reported volume.

The notes were under pressure after the billboard advertising company reported first-quarter results.

The company saw a slight revenue miss with forward guidance below expectations, a source said.

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