Revlon notes eyed after warning to bondholders; AMC trades actively amid stock sale

By James McCandless

San Antonio, Oct. 20 – Distressed debt trading focused on retail and entertainment sector issuers on Tuesday.

Revlon, Inc.’s notes varied in direction after warning bondholders that repayment may be at risk if creditors do not participate in an exchange.

The 5¾% senior notes due 2021 declined by 2 points to close at 28 bid. The 6¼% senior notes due 2024 held level to close at 10 bid.

On Monday, the New York-based cosmetics producer warned bondholders in a letter that repayment of its notes is at risk.

The company wants to buy back $345 million of 5¾% bonds due next year at a discount.

Movie theater chain AMC Entertainment Holdings, Inc.’s paper was active yet unchanged again as the company announced a common stock sale.

The 10½% notes due 2025, while pushing up to 61¾ bid during the day’s activity, closed unchanged at 61½ bid.

Early Tuesday, the Leawood, Kan.-based movie theater name announced that it would sell up to 15 million shares of its common stock.

The company also warned investors that if it does not raise sufficient capital or restructure by the end of the year it would be in danger of filing for bankruptcy.

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