Rite Aid bonds higher on whiff of bankruptcy; DISH improves; AMC notes extend declines

By Cristal Cody

Tupelo, Miss., Aug. 25 – Rite Aid Corp.’s bonds mostly rallied in the secondary market on Friday while its stock plunged to a new low as distressed traders got a whiff of a possible bankruptcy following news reports.

Rite Aid’s 8% senior secured notes due 2026 (Caa3/CCC-/B) climbed 4 1/8 points to 61 1/8 bid, a source said.

Trading totaled $6.2 million with the issue among the top of the stack of most active distressed names.

Another source saw the notes by the close 4¼ points better at 61¼ bid.

Secondary action by late afternoon topped out at $8 million in the distressed space in paper from DISH Network Corp., a source reported.

DISH’s 7¾% senior notes due 2026 (Caa2/B-) were 1¼ points better at 75 bid.

AMC Entertainment Holdings, Inc.’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) declined further on Friday following its stock conversion the previous session.

The bonds were down 2½ points at 67½ bid and going out more than 8 points lower on the week, a source said.

The issuer was among the day’s most active distressed names in the secondary market, but overall volume was around $10 million, compared to about $45 million of AMC’s paper trading Thursday.

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