Canacol Energy bonds climb; Altice France mixed on week; DISH DBS paper weakens

By Cristal Cody

Tupelo, Miss., April 19 – Canacol Energy Ltd.'s senior notes soared by the close on Friday in busy secondary action after the company reported a new gas discovery.

“Almost $20 million has traded today,” a source said. “On the week, they’re up pretty good.”

The notes headed out nearly 10 points better on the week.

West Texas Intermediate crude oil benchmark futures for May delivery edged up 4 cents on Friday to $82.73 a barrel.

Stock indices were mixed.

The S&P 500 index fell 0.88%, while the iShares iBoxx High Yield Corporate Bond ETF added 14 cents to $75.98.

Market volatility tracked around 5% higher during the session but pulled back by the afternoon. The CBOE Volatility index increased 3.94% to 18.71.

The benchmark 10-year Treasury note yield declined 3 basis points to 4.62%.

Otherwise, market action was lighter in the distressed space.

“It’s been a really pretty quiet Friday relative to the rest of the week,” a source said.

Trading in Altice France Holding Restricted Group slowed but remained strong over the session.

The 10½% senior notes due 2027 (Ca/CCC-) were mostly unchanged from Thursday but softer on the week.

Altice’s 5¾% notes due 2029 also saw strong secondary action over the day and were ending the week “up a couple points,” a source said.

The notes were trading over 2 points higher.

Meanwhile, DISH DBS Corp.’s 7 3/8% senior notes due 2028, part of a distressed bond exchange offer that was canceled in January, saw fairly strong action in the secondary market on Friday on more than $10 million of paper traded.

The notes headed out down about 2 points on the week.

Also this week, DISH DBS’ CDS spreads moved out more than 400 basis points to past 3,500 bps.

DISH DBS leads Fitch Ratings’ top 10 market concern bonds with $15.25 billion of debt outstanding, according to Fitch’s April distressed and default report released Friday.

Fitch’s top market concern loans and bonds lists saw new additions, including Altice France, which is “at risk of a debt restructuring that would likely constitute a DDE given their near-term maturities and challenged operations.”

The high-yield TTM default rate in March fell to 3.04% from 3.06% in February, Fitch said.

The leveraged loan TTM default rate ended March at 3.7%, up from 3.4% at the end of February.

Canacol bonds jump

Canacol’s 5¾ senior notes due 2028 (Caa1/BB-/B) climbed to 52 bid, 52 offered going out Friday on nearly $20 million of secondary action, a source reported.

The bonds climbed from where the issue traded at the week’s start at 43 bid, 44 offered.

Canacol Energy on Thursday reported a new gas discovery.

Moody’s downgraded the notes earlier in April based on the company’s liquidity risk and growing refinancing risk.

The Calgary, Alta.-based gas and exploration company operates mainly in Colombia.

Altice paper mixed

Altice France Holding SA’s 10½% senior notes due 2027 (Ca/CCC-) were little changed from Thursday at 38¼ bid, 39¼ offered but softer on the week, a source said.

“They’re down but a little bit active,” the source said.

The notes were quoted on Thursday at 39¼ bid and at the start of the week at 41 bid, 42 offered.

With trading totaling over $13 million on Friday, the notes were Altice France’s most active tranche, the source said.

Altice Financing SA’s 5¾% notes due 2029 also saw $13 million of secondary action over the day.

The notes went out at 74½ bid, 75½ offered, up from 72 bid, 73 offered to start the week.

The Paris-based telecommunications company’s bonds remain pressured with Altice France reportedly undergoing debt negotiation talks.

DISH paper softens

DISH DBS’ 7 3/8% senior notes due 2028 (Caa1/CCC) were moving Friday at 41 bid, 42 offered in strong action that totaled more than $10 million, a source said.

“It’s pretty active,” the source said.

The bonds softened from starting the week at 43 bid, 44 offered.

Also this week, DISH DBS CDS spreads moved out 440 bps, according to a Moody’s report.

Spreads widened over the period ended Wednesday to 3,513 bps.

DISH Network Corp.’s CDS spreads also widened 367 bps during the week to 2,962 bps.

Parent EchoStar Corp. reported heavy fiscal 2023 losses in February following the failed DISH bond exchange offers for four tranches of notes in January and two tranches of convertible bonds in February.

EchoStar currently is seeking funding to cover $1.98 billion of debt that matures in November.

The Englewood, Colo.-based satellite owner owns companies that include DISH, HughesNet, Boost Mobile and Sling TV.

Distressed returns

S&P U.S. High Yield Corporate Distressed Bond index one-day total return losses improved to 0.12% on Thursday, compared to minus 0.36% on Wednesday, negative 1¼% on Tuesday and minus 0.52% on Monday.

Month-to-date total returns saw modest gains to negative 3.23% from negative 3.34% on Wednesday. April returns remained down from negative 2.99% on Tuesday and negative 1.76% at the start of the week.

Year-to-date total returns saw slight improvement on Thursday to minus 1.16% from minus 1.28% midweek but remained down from positive returns of 0.92% on Tuesday and 0.34% on Monday.

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