AMC notes recover some losses post reverse stock split; Rite Aid higher; WeWork quiet

By Cristal Cody

Tupelo, Miss., Aug. 30 – Distressed trading tracked higher on Wednesday in AMC Entertainment Holdings, Inc.’s paper, which took back some of the losses following the company’s reverse stock split.

“AMC bonds have been active today,” a trader said, noting $17 million of the 10% senior secured second-lien notes due 2026 (Caa3/CCC-) changed hands. “That is up a good amount. It’s in the top 10.”

The issue rallied over 5 points to 67 bid, 68 offered.

Rite Aid Corp.’s paper continued to grab some focus in the late summer session on bankruptcy chatter.

The 8% senior secured notes due 2026 (Caa3/C/B) picked up about 2 points to trade at 63 bid, 64 offered on $5 million of secondary activity, a source said.

Secondary action in WeWork Inc.’s notes has been nonexistent in late August with some of the company’s bonds not seen trading in three weeks.

“It’s not very active to say the least,” a trader said.

WeWork’s 7 7/8% notes have dropped to around 7 bid, 9 offered from where they traded with a low 30s handle at the start of the month before the company reported doubts about its ability to continue as a going concern.

The company is expected to undertake a 1-for-40 reverse stock split effective Friday to regain compliance with New York Stock Exchange listing requirements.

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