Staples moves higher; WW International notes jump in trading rush; DISH bonds improve

By Cristal Cody

Tupelo, Miss., Dec. 6 – Paper from Staples Inc. and WW International Inc. climbed in strong secondary trading on Wednesday.

Staples’ 10¾% senior notes due 2027 (Caa2/CCC) added another point over the session and were trading more than 10 points better since its third-quarter earnings report last week.

WW’s 4½% senior secured notes due 2029 (B3/B) saw the strongest action over the day with the bonds rallying 2¾ points on more than $23 million of paper traded, according to a market source.

In other distressed paper, DISH Network Corp.’s 7¾% senior notes due 2026 (Caa2/B-) improved on Wednesday after shedding about ½ point on Tuesday.

The bonds were last seen 1¾ points stronger on the day.

Stock indices closed lower on Wednesday and Treasury yields retreated following a spate of weak economic reports, sources said.

Private payroll company ADP reported private firms increased their payrolls by 103,000 in November, less than the 130,000 economists expected.

The S&P 500 index fell 0.39%, while the iShares iBoxx High Yield Corporate Bond ETF edged up 1 cent, or 0.01%, to $75.88.

The CBOE Volatility index rose nearly 1% to 12.97.

Staples picks up

Staples’ 10¾% senior notes due 2027 (Caa2/CCC) were trading over 2 points better this week after picking up another point on Wednesday on more than $14 million of secondary action, a source said.

The bonds went out at 68 bid and yielding 25.48%.

On Tuesday, the notes were 1¼ points better at a quote of 67 bid and a yield of 26.06%.

Staples’ bonds have climbed more than 10 points since trading with a 55 handle in the prior week ahead of its third-quarter earnings report.

The Framingham, Mass.-based office products retail company is owned by private equity firm Sycamore Partners.

WW bonds gain

WW International’s 4½% senior secured notes due 2029 (B3/B) reversed Tuesday’s weakness and climbed 2¾ points on Wednesday in heavy trading that totaled $23.4 million, a source said.

The issue went out at 59 bid with a yield of 16.25%.

On Tuesday, the issue fell ¼ point to 56¼ bid and a 17.37% yield on $14.25 million of volume.

The New York-based WeightWatchers operator in November reported third-quarter profit following heavy losses in 2022.

DISH stronger

DISH DBS Corp.’s 7¾% senior notes due 2026 (Caa2/B-) traded up 1¾ points to 61½ bid on Wednesday on about $6 million of activity, a source said.

The bonds were up from 59¾ bid on Tuesday and about 1½ points better week to date.

DISH’s 5 1/8% senior notes due 2029 (Caa2/B-) added more than ¾ point to reach 46 bid over the session in lighter supply totaling $3.5 million.

The Englewood, Colo.-based satellite cable operator announced in November that EchoStar chief executive officer and president Hamid Akhavan joined DISH as its president and CEO. The merger between the two companies is expected to be completed before the end of the year.

Distressed index higher

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns grew to 0.72% on Tuesday from 0.43% on Monday.

Month-to-date total returns rose to 1.26% in the second session of the week from 0.54% on Monday.

Year-to-date distressed total returns also increased to 16.48% on Tuesday from 15.65% at the start of the week.

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