Shutterfly secured notes lower in active trade; CSC gains continue; Telesat down

By Abigail W. Adams

Portland, Me., Jan. 4 – The distressed debt space saw another strong session on Wednesday with bond markets strong despite the release of the Federal Open Market Committee’s December meeting minute notes, which reflected a continued hawkish sentiment and commitment to raise rates to tame inflation.

The S&P U.S. High Yield Corporate Distressed Bond index closed Wednesday with a 0.74% gain.

However, the gains were not felt uniformly across the space.

Shutterfly Inc.’s 8½% senior secured notes due 2026 (B2/CCC) were lower in heavy volume.

Telesat Corp.’s 5 5/8% senior notes due 2026 (B2/CCC+) dropped more than 1 point in light volume.

However, Altice USA Inc. subsidiary CSC Holdings LLC’s junk bonds (Caa1/B-) continued to improve in active trade after closing the previous year near their historic lows.

Shutterfly’s 8½% senior secured notes due 2026 were lower in heavy volume.

The notes dropped more than 2½ points in intraday activity to trade as low as 55, a new historic low for the notes.

However, the notes pared their losses into the close and ended the day down ¾ point at 57 with the yield about 27 5/8%, a source said.

Shutterfly’s junk bonds have been on a steady downtrend since December.

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