Rite Aid notes eyed after earnings, guidance released; AMC lower in entertainment space

By James McCandless

San Antonio, Sept. 24 – Retail and entertainment names were the focus of the Thursday distressed debt session.

Rite Aid Corp.’s notes varied after the company released its second-quarter earnings report and guidance for the rest of the year.

The 7˝% senior notes due 2025 shaved off ˝ point to close at 99 bid. The 8% notes due 2026 gained ˝ point to close at 101 bid.

Before the market opened on Thursday, the Camp Hill, Pa.-based drug store chain reported better-than-expected earnings for the second quarter.

The company reported earnings per share of 25 cents, higher than what analysts were expecting at an 11 cents per share profit.

Revenues also outpaced predictions at $5.98 billion.

Despite this, the structure weakened due to the company’s guidance for the rest of the year.

Theater chain AMC Entertainment Holdings, Inc.’s paper ended lower after the company filed plans to sell more common stock.

The 10˝% notes due 2026 dived 8 points to close at 75 bid. The 12% paper due 2026 lost 2˝ points to close at 27 bid.

On Thursday morning, the Leawood, Kan.-based movie theater operator announced in a Securities and Exchange Commission filing that it would start an at-the-market offering for 15 million shares of its common stock.

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