Avaya notes edge up, stock drops; Global Medical Response weak; Diamond Sports declines

By Cristal Cody

Tupelo, Miss., Nov. 30 – Avaya Holdings Corp.’s 6 1/8% senior secured notes due 2028 (Caa2/CCC-/CCC) gained ½ point in thin secondary supply on Wednesday following the company’s report of “material weaknesses” in its internal control over financial reporting.

The issue went out at 44½ bid in light trading, a source said.

The bonds were ending November up about 1½ points.

Avaya’s stock closed down 13.75% to 97 cents, on the far side of a 52-week high of $21.65.

Global Medical Response Inc.’s bonds have been sinking steadily since August and remained soft on Wednesday following a downgrade from S&P Global Ratings based in part on inflation pressures from fuel costs.

The 6½% senior secured notes due 2025 (B2/B-) were down more than ¼ point from the prior day and ending November more than 2 points lower at the 75¼ bid area, a source said.

The issue has given back about 20 points since August.

In other distressed paper, Diamond Sports Group LLC’s 5 3/8% senior secured notes due 2026 (Caa2/CCC-) traded about 1½ points lower since the start of the week at the 15½ bid area, a source said.

The company on Monday reported heavy third-quarter losses and softer revenue.

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