AMC better on post-Covid hopes; EnVen trades up; PBF, Diamond Sports down; Mallinckrodt gains

By Cristal Cody

Tupelo, Miss., April 9 – AMC Entertainment Holdings, Inc.’s bonds mostly rallied over the week on growing expectations of “going back to normal,” a source said Friday.

AMC’s 12% second-lien senior secured notes due 2026 (Ca/C) traded up ¼ point to 90¼ bid after rising 1 5/8 points in the prior session.

The notes opened the week at 82½ bid and traded at the start of the year at 27 bid.

“Some companies have been really affected by the pandemic,” the market source noted. “I don’t know about back to normal, but they’re predicted to provide better numbers.”

The Leawood, Kansas-based movie theater owner reported in March that 98% of its U.S. locations have reopened as vaccinations continue to ramp up across the country.

The Covid-19 hard-hit cruise sector was a “touch softer” and down about ¼ point on Friday, the source said.

EnVen improves

EnVen Energy Corp.’s new $300 million of 11¾% five-year senior secured second-lien notes (Caa1/B-) priced Thursday at 98 to yield 12.97% traded higher on Friday at 102 to 102¼ bid on $9 million of secondary volume, a source said.

The bonds were seen Thursday in secondary trading at 101½ bid, 102½ offered.

The Houston-based independent deepwater exploration and production operator plans to use the proceeds to redeem its 11% senior secured second-lien notes due 2023.

“Energy was heading up, down today,” a market source said. “Oil is a bit softer.”

PBF softens

West Texas Intermediate crude oil futures for May and June fell a second day on Friday. May deliveries settled 28 cents lower at $59.32 a barrel, while June deliveries dropped 28 cents to settle at $59.35 a barrel.

North Sea Brent crude oil futures for June deliveries declined 25 cents to settle at $62.95 a barrel.

Petroleum refiner PBF Holding Co. LLC’s 6% senior notes due 2028 (B3/B+/B+) were down 1 point at 76 bid during the session, a source said.

Trading was lighter with some issues not active, a market source said.

Oil and gas drilling contractor Nabors Industries Inc.’s 5¾% senior notes due 2025 (Caa2/CCC-), which traded 1½ points better on Thursday to 78 bid, were not seen in secondary trading Friday.

Transocean Ltd.’s 6.8% notes due 2038 (C/CCC-) rose 2¾ points to 49¼ bid in thin volume of less than $1 million, a source said.

The Vernier, Switzerland-based offshore driller’s 2038 notes had declined 1 1/8 points in the prior session on $7.5 million of issues traded.

Overall market tone was mixed with major stock indices ending higher.

The iShares iBoxx High Yield Corporate Bond ETF closed Friday down 6.5 cents at $87.20.

The S&P U.S. High Yield Corporate Distressed Bond Index ended Thursday with a month-to-date total return of 1.53% and 18.66% of year-to-date total returns.

Mallinckrodt stronger

Bankrupt pharmaceuticals maker Mallinckrodt plc’s bonds remained higher in the secondary market on Friday, a source said.

Mallinckrodt’s 5 5/8% notes due 2023 added 1¼ points to head out at 75 bid on more than $3.7 million of secondary supply.

The company’s 5¾% notes due 2022 also were up 1 point at 74¼ bid on Friday.

The company announced in March that it reached an agreement with a group of first-lien term lenders holding about $1.3 billion of its outstanding first-lien term loans to support its restructuring support agreement.

Mallinckrodt (D) filed for Chapter 11 bankruptcy in October in the U.S. Bankruptcy Court for the District of Delaware.

The company, with principal offices in Dublin and St. Louis, has received approval to extend filing a bankruptcy restructuring plan until Aug. 9.

Diamond Sports slides

Diamond Sports Group LLC’s bonds continued to weaken in the distressed space Friday, a source said.

The company’s 6 5/8% senior notes due 2027 (B3/CCC-) fell 1¼ points to 49¼ bid on $4 million of paper traded.

The issue started the year trading in the 60 bid range.

The 5 3/8% senior secured notes due 2026 (Ba3/CCC+) also were a ¼ point softer during the session at 68¾ bid in light trading.

The issue traded at 81¼ bid at the start of the year.

The Chesapeake, Va.-based sports broadcast group’s bonds have declined since parent company Sinclair Broadcast Group, Inc. reported in February soft guidance for the subsidiary and an interest in liability management initiatives that could include a debt exchange or redemption.

Moody’s Investors Service downgraded the notes in March.

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