DISH Network notes edge higher; AMC Entertainment active; Enviva paper trades off

By Abigail W. Adams

Portland, Me., Jan. 9 – The distressed debt space was quiet and flat on Tuesday as the market awaited the next great catalyst for movement – the Thursday release of the Consumer Price Index report.

Trading volumes remained thin, as they have for much of the year, with large, liquid issues in focus although with little movement in price.

DISH Network Corp.’s senior notes (Caa2/B-) were active with the notes edging higher after seeing some selling the previous week.

AMC Entertainment Holdings, Inc.’s senior notes were active although with little movement in price as the notes also stabilized from last week’s sell-off.

However, certain credits remained under pressure as investors shed risk in companies with uncertain futures.

And Enviva Partners, LP was the name on the chopping block on Tuesday with its 6½% senior notes due 2026 (Caa2/CC/CC) plunging 5 to 6 points in active trade.

DISH edges up

DISH’s senior notes continued to improve on Tuesday after opening the year with losses.

DISH’s 5 1/8% senior notes due 2029 saw heavy volume with the notes rising ½ to ¾ point to a 50-handle.

The notes were trading in the 50 to 50½ context heading into the market close, a source said.

The yield was about 21%.

There was $18 million in reported volume.

DISH’s 7¾% senior notes due 2026 were also up about ½ point.

The notes closed the day at 69¾ with the yield about 24 7/8%, a source said.

There was $8 million in reported volume.

DISH’s senior notes have stabilized over the past few sessions after seeing some selling pressure last week following the completion of the DISH/EchoStar merger.

AMC active

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) continued to see heavy volume on Tuesday although with little movement in price.

The 10% notes continued to trade in the 81 to 82 context.

They closed the day wrapped around 82 with the yield about 19 5/8%.

Volume in the notes reached $9 million.

AMC was under pressure late last week as stock continually hit new all-time lows.

However, the movie theater operator’s notes staged a rebound over the past two trading sessions.

Enviva plunges

Enviva’s 6½% senior notes due 2026 plunged in active trade on Tuesday with the company among the default candidates of 2024.

The 6½% notes traded as low as 40 in intraday activity but closed the day wrapped around 42½ with the yield about 59%, a source said.

There was $8 million in reported volume.

The 6½% notes plunged to the low 30s after issuing a going-concern statement in its third-quarter earnings report.

The notes saw a healthy rebound amid the market surge in late December and closed 2023 wrapped around 50.

However, the company’s ability to sustain itself remained in doubt with investors once again shedding risk, a source said.

Indexes

The S&P High Yield Corporate Distressed index added 0.21% on Monday after logging consecutive losses in the first trading week of 2024.

The index’s year-to-date returns are negative 1.45%.

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