AMC, Community Health, SESI, Peabody, Hertz paper better; Frontier, Goodman soften

By Cristal Cody

Tupelo, Miss., Jan. 19 – AMC Entertainment Holdings, Inc.’s bonds saw strong trading on Tuesday after the company announced in an 8-K filing with the Securities and Exchange Commission that it issued $100 million of guaranteed first-lien secured notes due 2026 on Friday, sources said.

AMC’s 12% second-lien secured notes due 2026 (Ca/C) jumped 4¾ points to 34 bid.

The company’s 10½% first-lien secured notes due 2025 (Caa2/CCC) climbed 1 point to 83½ bid.

AMC’s 5¾% senior subordinated notes due 2025 (Ca/C) were quoted trading at 24 bid.

The new notes bear a rate of 15% annually. Interest for the first three interest periods after the issue date may be paid in PIK interest at a rate of 17% per year.

Frontier bonds dip

Frontier Communications Corp.’s 7 5/8% notes due 2024 softened 1½ points during the session to trade at 52 bid, a market source said.

The company announced on Friday that it received approval from the Federal Communications Commission for its Chapter 11 bankruptcy restructuring.

The U.S. Bankruptcy Court for the Southern District of New York confirmed the company’s plan of reorganization in August. The company filed for bankruptcy on April 14, 2020.

Frontier expects to emerge from bankruptcy early in 2021.

Goodman paper declines

Distressed bonds from Goodman Solutions, formerly known as Goodman Networks Inc., have been active in the secondary market, a source said.

The Frisco, Tex.-based home residential technical maintenance and installation provider’s 8% notes due 2022 were seen in thin trading on Tuesday at 21 bid.

The bonds traded at 22½ bid in heavy volume on Friday, improved from where the issue was seen at 11¼ bid at the start of the year.

Community Health gains

In other distressed trading, Community Health Systems Inc.’s 6 7/8% notes due 2028 (Ca/CCC-) gained 3¾ points to trade at 85 5/8 bid following a ratings upgrade from Moody’s Investors Service on Tuesday, a source said.

CHS/Community Health Systems priced a massively upsized $1.775 billion of 6 7/8% eight-year junior-priority secured notes on Tuesday at par. The notes were upsized from a planned $750 million offering.

The company said proceeds of the new notes are slated to redeem or repurchase its outstanding 9 7/8% junior priority secured notes due 2023 in a cash tender offer.

Energy bonds improve

Market tone was positive on president Donald Trump’s last full day in office ahead of Joe Biden’s inauguration on Wednesday and expected additional Covid-19 relief.

Stocks were all up with the Nasdaq ending 1.53% higher.

The iShares iBoxx High Yield Corporate Bond ETF rose 23 cents, or 0.26%, to $87.34.

The S&P U.S. High Yield Corporate Distressed Bond index ended Friday ahead of the long holiday weekend with a month- and year-to-date total return of 5.54%.

Oil futures rose over Tuesday’s session.

North Sea Brent crude oil futures for March deliveries settled up 80 cents at $55.90 a barrel.

West Texas intermediate crude oil for February delivery added 62 cents to settle at $52.98 a barrel.

In the energy space, SESI, LLC’s 7¾% notes due 2024, which gave back 3 points on Friday, improved ½ point to 33½ bid on Tuesday, according to a market source.

SESI is a subsidiary of Superior Energy Services Inc., which filed for Chapter 11 bankruptcy in December.

Coal producer Peabody Energy Corp.’s 6 3/8% senior secured notes due 2025 (Caa1/CCC-) were quoted up 2¾ points at 64 bid on Tuesday, a source said.

Peabody Energy announced Friday that it has extended a tender offer to Jan. 25 to exchange its 6% secured notes due 2022 for new 10% secured notes due 2024 and new 8½% secured notes due 2024.

Elsewhere on Tuesday, car rental company Hertz Corp.’s 5½% notes due 2024 rose ½ point to 54¾ bid, a source said.

Hertz filed for Chapter 11 protection in May.

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