Distressed bonds mixed; AMC, Hertz improve; travel, retail, energy soft to start year

By Cristal Cody

Tupelo, Miss., Jan. 4 – While stocks had a bad day on the first trading session of the New Year, some distressed debt issuers saw inroads during the session.

Theater owner AMC Entertainment Holdings, Inc.’s bonds climbed in strong trading as 2021 kicked off, sources said.

AMC’s 10½% first-lien secured notes due 2026 (Caa2/CCC) were among the gainers on the day in distressed names.

The notes rose 7/8 point to 69 bid, a source said.

AMC’s 6 1/8% senior subordinated notes due 2027 (Ca/C) hit 15 bid, up ½ point.

Hertz Corp.’s notes were modestly better on Monday.

The car rental operator’s 6¼% senior notes due 2022 improved less than ½ point to 53.6 bid in strong trading.

Hertz’s 5½% senior notes due 2024 gained ¼ point from before Christmas to 53½ bid in thin trading over the day.

Offshore driller Transocean Ltd.’s 7½% senior notes due 2031 (C/CCC-) rose 1 point to 36¾ bid, a source said.

Meanwhile, the S&P U.S. High Yield Corporate Distressed Bond index ended December up 0.13% with a 10.7% month-to-date return and a 24.01% quarter total return. On Dec. 31, the index had a total return of minus 0.15%, shaving off the minus 3.09% year-to-date return last seen in mid-December.

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