AMC notes under pressure; Nabors lower; Talen Energy declines; Plains All American softens

By Cristal Cody

Tupelo, Miss., Dec. 20 – Secondary trading slowed in the distressed space on Monday as desks thin for the year-end holidays.

Bonds from AMC Entertainment Holdings, Inc. and Nabors Industries Inc. were among the most active issues on less than $10 million of supply each.

AMC’s secured notes fell 1½ points during the session after going out Friday 1 3/8 points weaker.

Nabors Industries’ 5¾% senior notes due 2025 (Caa2/CCC-) softened over 1¼ points.

Talen Energy Supply LLC’s notes also were active and about 2 points to over 2¾ points lower during the session.

Overall market tone was weaker Monday with stock indices down over 1%.

The iShares iBoxx High Yield Corporate Bond ETF closed off 15 cents at $86.22.

Oil prices declined $2 after ending Friday $1.50 lower.

West Texas Intermediate crude oil benchmark futures for January deliveries settled Monday down $2.63 at $68.23 a barrel.

Plains All American Pipeline, LP’s 6 1/8% series B fixed-to-floating-rate cumulative redeemable perpetual preferred units (Ba3/BB/BB) traded just under 2½ points weaker on the day.

AMC trades down

AMC Entertainment’s 10% senior secured second-lien notes due 2026 (Ca/CCC-) fell 1½ points to 92 3/8 bid with $9.5 million of paper traded Monday, a source said.

The notes declined over 7 points in the prior week.

AMC’s bonds have been weaker as the reopening space softens on the spread of the Omicron Covid-19 variant and following disclosures earlier in December that insiders sold $10 million of shares.

The Leawood, Kan.-based movie theater owner reported Friday that the new Spider-Man release saw the highest opening night record for a movie at its theaters in December with 1.1 million people attending Thursday’s showing.

Nabors, Plains Pipeline dip

Nabors Industries’ 5¾% senior notes due 2025 (Caa2/CCC-) fell over 1¼ points to 88¾ bid on $9 million of secondary volume Monday, a source said.

The Bermuda- and Houston-based oil and gas drilling contractor’s 2025 issue is trading nearly 4 points higher in December.

Plains All American Pipeline’s 6 1/8% series B fixed-to-floating-rate cumulative redeemable perpetual preferred units (Ba3/BB/BB) traded just under 2½ points weaker on the day at 84 bid, a source said.

Volume totaled more than $3.7 million.

The Houston-based natural gas and crude oil transporter’s issue is up about ¼ point from a week ago.

Talen notes lower

Talen’s 6½% notes due 2025 (Caa1/CCC/B-) declined nearly 2 points to 43 bid Monday on $1 million of paper traded, according to a market source.

Talen’s 10½% senior notes due 2026 (Caa1/CCC/B-) declined 2 5/8 points to 46½ bid over the day.

Volume totaled $1 million.

Last week, Talen’s notes dropped about 2 points to over 4 points in heavy trading action after the company announced Wednesday that it closed on an upsized $848 million first-lien revolving credit facility due in 2024.

Fitch Ratings placed the Woodlands, Tex. and Allentown, Pa.-based company and its bonds on ratings watch negative, noting the facility will stabilize Talen’s liquidity profile but will adversely affect the ratings of its existing debt.

Distressed returns soft

Distressed index daily returns were weaker on Friday.

The S&P U.S. High Yield Corporate Distressed Bond Index’s one-day total return was negative-0.42% on Friday, compared to negative-0.16% on Thursday, negative-0.21% on Wednesday, 0.44% on Tuesday and 0.02% at the week’s start.

Month-to-date returns fell to 0.36% from 0.78% on Thursday, 0.94% on Wednesday, 1.15% on Tuesday and 1.59% on Dec. 13.

Year-to-date total returns were lower Friday at 22.21% versus 22.72% on Thursday, 22.92% on Wednesday, 23.17% on Tuesday and 23.71% at the start of the week.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.