Allen Media downtrend accelerates; Telesat gains continue; Envision Healthcare notes up

By Abigail W. Adams

Portland, Me., June 2 – Several distressed credits were active during Thursday’s session with ETF buying and topical news driving large movements in the space.

Allen Media LLC’s 10½% senior notes due 2028 (Caa1/B-) plummeted in heavy volume on Thursday.

Telesat Corp.’s senior notes continued their upward momentum with investors expressing renewed confidence in the satellite communications company.

While volume was light, Envision Healthcare Corp.’s 8¾% senior notes due 2026 (Ca/D) jumped in a late-day trade as a dealer paid up for the hard-to-find paper.

Allen Media plummets

Allen Media’s 10½% senior notes due 2028 sank in heavy volume on Thursday with the downward trend of the notes accelerating.

The notes fell 6 points in heavy volume on Thursday. They traded to a low of 60 and a high of 63 3/8, a source said.

However, the majority of prints were on a 62-handle.

There was $24 million in reported volume.

The illiquid issue had not seen a $1 million plus trade since the beginning of May when it traded on a 90-handle, a source said.

However, there was a small trade in the name at 68 on Tuesday.

The notes have been on a strong downtrend alongside other CCC credits since early April when the notes were on a 98-handle, a source said.

Allen Media is engaged in a multi-billion-dollar lawsuit against ratings agency tthe Nielsen Co. alleging fraud.

Telesat gains

Telesat continued to gain in active trading as investors express renewed confidence in the satellite company following a general shareholder meeting on Wednesday.

Telesat’s 4 7/8% senior notes due 2027 rose to 69 on Wednesday with the yield now 13.647%. There was $8 million in reported volume.

The 6½% senior notes due 2027 continued to trade on a 48-handle and closed the day at 48 7/8, according to a market source.

There was $6 million in reported volume.

The 6½% notes have climbed almost 4 points on the week.

Telesat has been on an upward trend since reporting earnings in early May.

Investors continued to show confidence in the company’s prospects following Wednesday’s shareholder meeting, a source said.

Envision Healthcare OWIC

Envision Healthcare’s 8¾% senior notes due 2026 jumped in a late-day trade as a dealer paid up for the hard-to-find paper.

The 8¾% notes were up 1¾ points to 27¾ in an early trade.

However, a dealer sent out several offers-wanted-in-competition for the issue in the afternoon that garnered no response, a source said.

The notes eventually traded at a 2-point premium to their last trade to close the day at 29¾.

“Someone was looking for it; they had to step up,” a source said.

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