Distressed paper lifted in light secondary supply; Bausch, Staples gain; FLY notes up

By Cristal Cody

Tupelo, Miss., Sept. 9 – Market action buzzed on Friday with the junk primary market waking and following heavy supply in the high-grade space over the week, while a handful of distressed names saw active trading during the session.

Paper from Bausch Health Cos. Inc. and Staples, Inc. was among the busier distressed names and traded mostly better on the day.

Bausch’s 5½% secured notes due 2025 (B3/B/BB-) picked up more than ¼ point to the 81 bid area on $10 million of volume, a source said.

Staples’ notes went out more than 1¾ points to 3¾ points better.

The 10¾% senior notes due 2027 (Caa2/CCC+) jumped 3¾ points to 78¾ bid on $9 million of secondary volume.

Bonds were lifted over the day in the more active distressed issues as tone remained higher, volatility dropped and stocks climbed, according to market sources.

The CBOE Volatility index was off more than 3% on Friday at 22.79.

Meanwhile, bonds from FLY Leasing Ltd. rallied 7 points on steady trading totaling $5 million after the company announced plans to repurchase up to $50 million of the bonds.

FLY Leasing’s 7% notes due 2024 (Caa2/CC) jumped 7 points to 65¼ bid, a source said.

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