Bausch mostly up in light trading; Envision softens; Team Health dips; Rite Aid mixed

By Cristal Cody

Tupelo, Miss., Sept. 2 – Secondary action in the distressed debt market waned on Friday ahead of the long Labor Day weekend, but Bausch Health Cos. Inc.’s paper remained active.

The notes were mixed but mostly recovered about 1 point to 1 3/8 points on more than $14 million of paper traded, according to a market source.

The company’s 5% senior notes due 2029 (Caa3/CC/C) rose 1 3/8 points to 37 bid on more than $6.5 million of secondary volume.

Bausch’s notes dove on Thursday 1½ points to 6½ points on $77 million of trading following the pharmaceutical company’s distressed debt exchange offer and ratings downgrades this week.

Envision Healthcare Corp.’s 8¾% senior notes due 2026 (Ca/CC) fell ¼ point to 32¾ bid in thin trading following an upgrade from S&P Global Ratings on Friday, a market source said.

Team Health Holdings, Inc.’s 6 3/8% senior notes due 2025 (Caa3/CCC/CCC-) traded off about ½ point to the 78½ bid range also in mostly quiet secondary action over the day, a source said.

Rite Aid Corp.’s 8% senior secured notes due 2026 (B3/CCC-/BB-) improved about ¼ point during the session to the 81½ bid area, a source said.

The notes were down about 1¾ points on the week.

Rite Aid’s credit default swap spreads also widened more than 50 basis points over the week.

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