Bed Bath & Beyond lower; AMC bonds, stock decline; National CineMedia drops; Bausch down

By Cristal Cody

Tupelo, Miss., Aug. 22 – Bed Bath & Beyond Inc.’s notes continued to decline on Monday after the retailer’s paper sank more than 11 points and its stock plunged over 40% on Friday.

Bed Bath & Beyond’s 3.749% senior notes due 2024 (Caa3/CCC) were down about 7 points.

Market volatility soared on Monday with the ‘Fear Factor’ index over 18% higher at the close.

The CBOE Volatility index climbed 18.3%, or $3.77, to $24.33.

Stocks were off with the S&P 500 index down 2.13% and the Nasdaq 2.55% lower at closing.

The iShares iBoxx High Yield Corporate Bond ETF declined 85 cents, or 1.1%, to $76.10.

AMC Entertainment Holdings, Inc.’s bonds slid on Monday along with its stock as the listing started for the company’s special dividend announced earlier in August.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) dropped about 2¾ points, while the company’s shares plunged nearly 42%.

The space remains under pressure as London-based cinema group Cineworld Group plc provided an update that it is considering filing Chapter 11 bankruptcy as it evaluates strategic options.

National CineMedia, LLC’s 5¾% senior notes due 2026 (Caa3/CCC) were trading more than 5 points weaker on Monday.

In the distressed pharmaceutical space, Bausch Health Cos. Inc.’s paper dropped about 2¾ points in strong trading activity on Monday after Fitch Ratings reported it will maintain its Rating Watch Negative on the issuer.

Newly bankrupt Endo International plc’s 9½% senior secured second-lien notes due 2027 (Ca/D) gained ½ point over the day.

Endo’s Chapter 11 bankruptcy filing last week triggered an event of default on its debt.

Bed Bath & Beyond lower

Bed Bath & Beyond’s 5.165% senior notes due 2044 (Caa3/CCC) fell another 1 point in the distressed market on Monday after going into the weekend down more than 11 points, a source said.

The bonds were quoted late Monday afternoon at the 15¼ bid area following a downgrade from S&P Global Ratings.

The notes sank 11 1/8 points to 16¼ bid on Friday.

Bed Bath & Beyond’s 3.749% senior notes due 2024 (Caa3/CCC) were quoted at the 32 bid range, down about 7 points from Friday.

The notes went out Friday off 11½ points on a 39 handle.

The Union, N.J.-based home products retailer reported in a statement on Thursday that it plans to provide an investor update at the end of the month.

Bed Bath & Beyond’s stock closed Monday down 16.23% at $9.24 after plunging 40.54% on Friday.

AMC bonds decline

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) dropped about 2½ points on Monday to 82 bid on heavy secondary action totaling $24 million, a source said.

The bonds were among the most active junk issues traded over the day.

The company’s 7½% first-lien notes due 2029 (Caa1/B-) also fell 2¼ points to 87¾ bid on light trading action of $3 million during the session.

AMC sold $950 million of the first-lien notes on Feb. 2 at par.

The Leawood, Kan.-based movie theater owner and gold and silver mine investor’s special dividend of one AMC preferred equity unit for each share of AMC class A common stock began trading Monday on the New York Stock Exchange under the symbol “APE”.

AMC’s stock plunged 41.95% to end the session at $10.46.

The preferred units closed down 13.67% to $6.

National CineMedia drops

Centennial Colo.-based cinema advertising company National CineMedia’s 5¾% senior notes due 2026 (Caa3/CCC) declined more than 5 points on Monday to the 49 bid range, a source said.

The notes are down more than 25 points since the start of the year.

National CineMedia reported Aug. 8 that second-quarter revenue soared 379.3% to $671 million, while net losses improved to 1 cent per share from 28 cents a year earlier.

Bausch notes soften

The day saw Bausch Health’s paper head out down about 2¾ points, a source said.

Bausch’s 9% senior notes due 2025 (Caa2/CCC/B-) fell 2¾ points to 70¼ bid on $13 million of volume.

The Laval, Quebec-based pharmaceutical company’s 5% senior notes due 2028 (Caa2/CCC/B-) also declined 2¾ points to 47 bid on $6 million of paper traded Monday.

Endo edges up

Endo Finance LLC’s 9½% senior secured second-lien notes due 2027 (Ca/D) picked up ½ point over the day on $7 million of secondary volume, a source said.

The notes were quoted at 27¾ bid.

Endo filed for Chapter 11 on Tuesday in the U.S. Bankruptcy Court for the Southern District of New York and reported Friday that the bankruptcy filing constitutes an event of default on its debt.

The Dublin-based pharmaceuticals company entered into a restructuring agreement with stalking horse bidder Ad Hoc First Lien Group, which is made up of certain creditors holding more than 50% of its outstanding secured debt.

Distressed returns decline

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns remained soft on Friday.

One-day returns were lower at minus 0.63% versus minus 0.27% on Thursday, minus 0.48% on Wednesday, 0.05% on Tuesday and 0.47% at the week’s start.

Month-to-date total returns fell to 3.11% from 3.76% on Thursday, 4.4% on Wednesday, 4.54% on Tuesday and 4.49% in the prior week’s first session.

Year-to-date total returns softened to minus 18.02% on Friday from minus 17.68% on Thursday, minus 17.46% on Wednesday, minus 17.07% on Tuesday and minus 17.11% at the beginning of the week.

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