AMC bonds mixed as 2024 movie forecast disappoints; Rite Aid up; Spirit Airlines gains

By Cristal Cody

Tupelo, Miss., Jan. 22 – AMC Entertainment Holdings, Inc. and Rite Aid Corp. continue to attract distressed secondary action in January, though volume was light in both names on Monday, sources reported.

AMC’s bonds have “been pretty active,” one source said. “They’re finally up a little bit.”

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) traded over 1 point better with a 79 bid handle after going out Friday more than 3 points higher on the week.

The movie industry is expected to continue to be under pressure in 2024, according to B. Riley Securities, Inc. analyst Eric Wold, who cut the price target on AMC’s stock by $3 to $12.

In the distressed retail space, Rite Aid’s 8% senior secured notes due 2026 have made inroads so far in 2023.

“There’s been a little bit of push in Rite Aid,” a source said.

Rite Aid’s 8% senior secured notes due 2026 had rallied 4 points on Friday to 78 bid, 79 offered but by Monday activity had quieted.

Spirit Airlines Inc.’s stock and bonds continued to mount a comeback with the name commanding much of the distressed corporate trade, sources reported.

The 8% senior secured notes due 2025 climbed around 1½ points to 2 points to the 64½, 65¼ range on more than $36 million of volume.

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