Wesco Aircraft under pressure post-earnings; AMC active; China Evergrande losses mount

By Abigail W. Adams

Portland, Me., Sept. 1 – While the overall high-yield secondary space was unchanged on Wednesday, several distressed debt names were under pressure.

Incora, a company created through the merger of Wesco Aircraft Holdings Inc. and Pattonair, saw its junk bonds drop upwards of 5 points following disappointing earnings and the resignation of the company’s chief financial officer.

Losses continued to mount for China Evergrande Group’s junk bonds after the company announced a default may be on the horizon.

The China-based real estate developer’s 8¼% senior notes due 2022 dropped 8½ points to close the day just north of 37, according to a market source.

The 7½% senior notes due 2023 fell more than 9 points to 29.

The 8¾% senior notes due 2025 dropped 3¼ points to close the day at 29¾.

While there was little price movement in the notes, AMC Entertainment Holdings, Inc.’s 12% second-lien senior secured notes due 2026 (Ca/C) were active with stock under pressure during Wednesday’s session.

The 12% notes continued to trade on a 90-handle and closed the day at 90½, according to a market source.

While the movie chain operator’s 12% notes were little changed on Wednesday, the company’s stock tanked 7% following an analyst downgrade.

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