AMC notes improve as exchange offers start; Valaris gains despite ratings downgrade

By James McCandless

San Antonio, June 3 – The distressed debt market saw continued focus on retail-related and energy tranches on Wednesday.

AMC Entertainment Holdings, Inc.’s notes saw better levels as the company starts exchange offers on four series of notes.

The 10½% notes due 2025 added 1½ points to close at 91 bid. The 5 7/8% senior subordinated notes due 2026 picked up 1¼ points to close at 29¼ bid.

On Wednesday, the Leawood, Kan.-based movie theater chain announced that it had started private exchange offers and related consent solicitations for four series of senior subordinated notes, including the 5 7/8% notes, Prospect News reported.

The company is offering to issue up to $640 million of new 12% cash/PIK second-lien secured notes due 2026 in exchange for the existing subordinated notes.

Concurrently, the company said that it has “substantial doubts” about its ability to remain a going concern and expects to report more than $2 billion in losses for the quarter.

Meanwhile, in energy, Valaris plc’s issues gained despite receiving a ratings downgrade following skipping an interest payment.

The 4 7/8% senior notes due 2022 improved by 3½ points to close at 13½ bid. The 7¾% senior notes due 2026 rose 1 point to close at 8½ bid.

© 2015 Prospect News.
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