Audacy notes lifted on bankruptcy filing; Qurate jumps; AMC Entertainment rebounds

By Abigail W. Adams

Portland, Me., Jan. 8 – It was a firm start to the week in the distressed debt space on Monday with the broader market strong after a rough start to the year.

Several names were lifted as buyers returned to the market, although volume remained thin.

Qurate Retail Inc.’s senior notes (Caa2/CCC-) jumped 4 to 6 points following an investors conference.

AMC Entertainment Holdings, Inc.’s senior notes were also on the mend after heavy selling late last week.

Bankruptcy news sparked activity in Audacy, Inc.’s 6½% senior secured second-lien notes due 2027, which added about 2 points although they continued to trade for pennies on the dollar.

Qurate jumps

Qurate Retail's senior notes jumped 4 to 6 points in active trade on Monday after the CEO presented at an investors conference.

The 8¼% senior notes due 2030 jumped 4½ to 5 points.

The notes were changing hands in the 48½ to 49½ context heading into the market close, a source said.

The yield tightened to about 25%.

There was $10 million in reported volume.

Qurate’s 8½% senior notes due 2029 jumped 6 points to close the day wrapped around 51.

The yield was about 25½%.

There was $6 million in reported volume.

Qurate made large gains after the CEO presented at ICR’s investors conference.

The company’s stock also saw an abnormally high volume of call options purchased on Monday – 5,321 call options were purchased versus the 492 average – indicating market expectations for a large price movement to the upside.

AMC pares losses

AMC’s senior notes pared their losses on Monday on a firm day for the market.

The 10% senior secured second-lien notes due 2026 (Caa3/CCC-) were largely unchanged in light volume with the notes remaining at 81 1/8, a source said.

The yield was 20 1/8%.

There was $3 million in reported volume.

However, the 7½% senior secured first-lien notes due 2029 (Caa1/B-) added 2 points.

The notes traded up to 67 at the market close with the yield about 17½%.

There was $10 million in reported volume.

AMC’s senior notes sank 2 to 3 points the previous week as stock continually hit new all-time lows as investors shed exposure to more speculative companies.

Audacy gains

Audacy’s pre-packaged bankruptcy filing lifted its 6½% senior notes due 2027 on Monday, although the notes continued to trade for pennies on the dollar.

The notes rose 2 points after the radio platform announced its Chapter 11 bankruptcy filing.

They closed Monday in the 3 to 3 3/8 context, a source said.

There was $6 million in reported volume.

The notes last traded in December on a 1-handle.

Audacy announced it had entered into a restructuring agreement with about 73% of holders of the 6½% notes.

The company will equitize about $1.6 billion of its approximate $1.9 billion in debt, Prospect News reported.

Indexes

The S&P High Yield Corporate Distressed index was down 0.07% last Friday with year-to-date returns now negative 1.66%.

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