AMC bonds under pressure; health care paper up, Bausch, CHS improve; Petrofac higher

By Cristal Cody

Tupelo, Miss., Dec. 6 – AMC Entertainment Holdings, Inc.’s paper remained weak with the 7½% notes due 2029 (Caa1/B-) down more than 2½ points in active trading on Tuesday.

Distressed paper in the health care and pharmaceuticals spaces traded higher over the session.

Bausch Health Cos. Inc.’s notes rose about 1 point to more than 1¾ points.

CHS/Community Health Systems, Inc.’s 6 1/8% senior secured notes due 2030 (Caa2/CCC/CCC) added 1¼ points during the session and were up more than 10 points since mid-November.

Financial markets stayed under pressure on Tuesday with stock indices all lower. The Nasdaq was down 2%.

The iShares iBoxx High Yield Corporate Bond ETF fell 27 cents, or 0.36%, to $74.57.

Volatility was higher a second day.

The CBOE Volatility index rose 6¾% to $22.85 over the afternoon.

Oil prices have shed more than $5 over the past two sessions.

West Texas Intermediate crude oil benchmark futures for January deliveries settled Tuesday $2.68 lower at $74.25 a barrel.

Energy services and infrastructure company Petrofac Ltd.’s 9¾% senior secured notes due 2026 (BB-/BB-) perked up by nearly 2¾ points during the session.

AMC lower

AMC’s paper moved down about 2 points to more than 2½ points on Tuesday, a market source said.

The 7½% notes due 2029 (Caa1/B-) fell more than 2½ points to head out at the 52½ bid context.

The issue has given back nearly 5 points in post-Thanksgiving Day secondary trading.

AMC’s new 12¾% senior secured notes due 2027 (B3/B) also were under pressure and went out about 2 points lower at 87½ bid and a 16.55% yield.

The notes were priced through Odeon Finco plc on Oct. 14 at 92 to yield 15.066%.

The Leawood, Kan.-based movie theater owner and gold and silver mine company’s stock dropped 9.4% to $6.75.

Bausch notes up

Bausch’s notes traded about 1 point to more than 1¾ points higher on Tuesday, market sources said.

The 5½% senior secured notes due 2025 (Caa1/B-/B) were quoted 1.8 points better at 87½ bid.

Bausch reported on Friday that it won a ruling in a patent infringement case in the U.S. District Court for the District of New Jersey that will prevent approval of generics for two of its products until the patents expire in 2031 and 2036.

The Laval, Quebec-based pharmaceutical company is underway with separating from unit Bausch + Lomb.

CHS paper improves

CHS/Community Health’s 6 1/8% senior secured notes due 2030 (Caa2/CCC/CCC) added 1¼ points during the session to head out at 54 bid, a market source said.

The bonds have climbed from where the issue was seen trading Nov. 11 at 42½ bid.

The Franklin, Tenn.-based operator of acute care and outpatient facilities in late October reported heavy third-quarter losses.

Petrofac gains

In the energy space, Petrofac’s 9¾% senior secured notes due 2026 (BB-/BB-) rose nearly 2¾ points to 66 3/8 bid over Tuesday’s session, according to a market source.

The London-based oilfield services company’s paper was yielding more than 23%.

Distressed returns rise

S&P U.S. High Yield Corporate Distressed Bond index one-day returns kicked the week off at 0.27% on Monday.

Returns were up from minus 0.16% on Friday and 0.11% in the same session a week ago.

Month-to-date total returns rose to 1.16% on Monday, compared to 0.9% on Friday and 1.06% in the first session of December.

Year-to-date total returns totaled minus 24.58% on Monday.

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