Covid-affected bonds drop; AMC declines; Diamond Sports up; Laredo weakens; Talen steadies

By Cristal Cody

Tupelo, Miss., Aug. 4 – Distressed bonds in spaces impacted impacted by the Delta variant of Covid-19 slipped Wednesday, while overall market tone weakened as oil prices sank.

“There was more chatter of people getting scared of the Delta variant, and all the reopening trades got hit hard,” a source said.

AMC Entertainment Holdings, Inc.’s 12% second-lien senior secured notes due 2026 (Ca/C) dropped 3½ points to 82¾ bid.

Meanwhile, Diamond Sports Group LLC’s notes traded up over 1 point, pushing the 6 5/8% senior notes due 2027 (Caa2/CCC-) to 41 bid after falling to the high 30s last week.

Declining oil prices kept energy bonds under pressure.

Laredo Petroleum, Inc.’s 7¾% senior notes due July 2029 (B3/B) priced in July were being eyed in the distressed secondary market.

The bonds traded down 1½ points Wednesday to 93 bid.

“It priced at par not too long ago, and it’s just been kind of a punching bag,” a source said.

Talen Energy Supply LLC’s bonds mostly held on to gains a day after announcing a joint venture with a bitcoin mining company.

Talen’s 7 5/8% senior secured notes due 2028 (Ba3/BB-/BB-) were off 1 point at 92 bid with the issue up ½ point week to date.

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