AMC first-lien, second-lien notes rally on ‘unlikely’ Amazon merger talk; DISH declines

By Cristal Cody

Tupelo, Miss., March 28 – AMC Entertainment Holdings, Inc.’s bonds rallied more than 2 points in heavy trading on Tuesday on market chatter of a potential merger with Amazon.com, Inc.

The issuer was among the most active distressed names traded on Tuesday on nearly $50 million of volume, a source said.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) picked up more than 2½ points to the 60 bid area, while the 7½% senior secured first-lien notes due 2029 (Caa1/B-) went out about 3½ points higher at 69 bid.

However, Amazon is “unlikely to acquire AMC,” Wedbush Securities analysts Alicia Reese and Michael Pachter said in a note on Tuesday, mentioning other opportunities for Amazon.com to cherry pick movie screen acquisitions, such as bankrupt cinema operator Cineworld Group plc.

“And in the end, we do not think that AMC is a likely acquisition target in general given its massive debt ($4.6 billion net debt) and inflated valuation,” the analysts said.

In other heavily traded distressed paper on Tuesday, DISH Network Corp.’s 5 7/8% senior notes due 2024 (B3/B) declined 1¾ points with the paper among the most active distressed issues on more than $23 million of secondary volume, a source said.

DISH’s notes were quoted at 82 1/8 bid.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.