U.S. Acute Care declines; Community Health notes jump; Enviva bonds extend losses

By Cristal Cody

Tupelo, Miss., Nov. 17 – A health care issuer found itself in the cross-hairs in the secondary bond market on Friday in heavy trading.

U.S. Acute Care Solutions LLC’s 6 3/8% senior secured notes due 2026 (B3/B-) dropped 3½ points to head out at 75½ bid on $12 million of notes changing hands, a source said.

Other distressed health care paper was stronger on Friday.

Community Health Systems Inc.’s 6 7/8% senior secured notes due 2029 (Caa2/CCC-) were one of the day’s bright spots in the distressed secondary market, according to a source.

The bonds climbed 4 5/8 points to 54 1/8 bid on $5 million of paper turning over.

In October, the health care space led global defaults, while oil and gas recorded its first default of 2023, according to a S&P Global Ratings note.

The global corporate default tally rose by nine to 127 as of Oct. 31 and is now 13% higher than the five-year average, S&P said.

Elsewhere, Enviva Partners, LP’s 6½% senior notes due 2026 (Caa2/CC/CC) shed another 2 points on Friday to a quote of 43½ bid but trading activity slowed considerably from the double-digit volume seen on Thursday and over the week. Trading topped $1 million over the day, a source said.

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