Bausch mostly flat, quiet following exchange; QVC notes better; AT&T weak; CHS declines

By Cristal Cody

Tupelo, Miss., Sept. 28 – Bausch Health Cos. Inc.’s notes mostly quieted Wednesday after the company reported final results of its exchange offers for 11 tranches of senior notes.

Bausch’s 4 7/8% senior secured notes due 2028 (B2/B/BB) were unchanged at the 66½ bid area by late in the day, a source said.

The year-to-date U.S. high yield default rate “could soar as high as 1.7% from the current 0.8% level, depending on the final amount of Bausch Health’s distressed debt exchange,” Fitch Ratings said in a report on Monday.

Bausch said Wednesday $5.59 billion of notes had been validly tendered.

QVC Inc.’s 4¾% senior secured notes due 2027 (Ba2/BB) rallied 4 points to just under 78 bid on $2.4 million of volume in one of the more active distressed names, a source said.

Distressed secondary activity was fairly thin over the session with supply stronger in higher-rated issues, according to a market source.

AT&T Inc.’s 3.55% notes due 2055 (Baa2/BBB) were trading Wednesday with a 65 handle, a source said.

Elsewhere, Community Health Systems Inc.’s 6 7/8% senior secured notes due 2029 (Caa2/CCC) dropped 4 points to a 50 handle on $1.08 million of secondary volume Wednesday, a source said.

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