Rite Aid, Staples, Kohl’s paper, CDS spreads under pressure; Avaya higher; Bausch down

By Cristal Cody

Tupelo, Miss., Aug. 25 – Rite Aid Corp.’s, Staples, Inc.’s and Kohl’s Corp.’s notes and credit default swap spreads stayed under pressure over the week.

Rite Aid’s 8% senior secured notes due 2026 (B3/CCC-/BB-) dropped about ½ point on Thursday to 83¼ bid, a source said.

Rite Aid’s CDS spreads widened nearly 400 basis points over the past week ended Wednesday, according to a Moody’s Investors Service report.

Kohl’s 5.55% senior notes due 2045 (Baa2/BBB-) stayed mostly unchanged at 73 bid but were down about 2 points on the week, a source said.

Staples’ 10¾% senior notes due 2027 (Caa2/CCC+) rose about 1 point to the 78 bid area in trading Thursday and were down about ½ point this week, a source said.

Avaya Inc.’s 6 1/8% senior secured notes due 2028 (Caa2/CCC-/CCC) were among the most active distressed names seen trading on Thursday on $13 million of volume, a source said.

The notes were quoted at 57 bid, up about 17¼ points this week.

Bausch Health Cos. Inc.’s notes also remained soft with the 9% senior notes due 2025 (Caa2/CCC/B-) off 2½ points on the day at 63½ bid on $1 million of volume, a source said.

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