AMC notes decline; iHeart slips in thin supply; Lumen, Level 3 improve; defaults up

By Cristal Cody

Tupelo, Miss., Sept. 18 – The distressed debt market focused on a handful of names on Monday that took a bulk of the day’s trading supply, sources reported.

AMC Entertainment Holdings, Inc.’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) slipped ¼ point to 71½ bid on nearly $12 million of volume.

iHeartCommunications, Inc.’s paper settled down after experiencing heavy trading action on Friday, a source reported.

The company’s 8 3/8% senior notes due 2027 (Caa1/CCC+) softened more than ½ point but held on to a 74 bid handle.

Meanwhile, bonds from Lumen Technologies, Inc. and subsidiary Level 3 Financing, Inc. gained.

Level 3’s 3 5/8% senior notes due 2029 (B3/CCC+) improved ¾ point to 61 bid on $12.5 million of volume.

Lumen’s 4% senior secured notes due 2027 (Caa2/B) added 1¾ points by the close to a quote of 68 1/8 bid on $3.5 million of paper traded.

So far this year, defaults and distressed debt exchanges are on the rise.

August had 16 defaults, the highest August monthly total since 2009, according to a S&P Global Ratings report.

As of Thursday, year-to-date default volume totaled $31.8 billion from 26 issuers, up from $14.6 billion of default volume from 12 issuers in the same period last year, according to a Fitch Ratings report.

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