AMC paper jumps on default downgrade; Ardagh pressured; markets shake off Fed order

By Cristal Cody

Tupelo, Miss., Feb. 1 – AMC Entertainment Holdings, Inc. topped the tape on Thursday in the distressed secondary market after S&P Global Ratings dropped it to selective default.

The company’s bonds climbed about 1½ points to over 2½ points on over $18 million of trading by the end of the session, a source said.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/D) led the rally and went out over 2½ points higher at 80 bid.

The 7½% senior secured first-lien notes due 2029 (Caa1/B-) also picked up 1½ points to a quote of 66 bid.

Meanwhile, Ardagh Group SA’s paper has been among active distressed names with the paper shedding around 4 points in the last two sessions, sources said.

ARD Finance SA’s 6½% subordinated notes due 2027 (Caa3/CCC+) dropped over 2 points on Thursday to head out at 44½ bid and carrying a yield of over 36%.

On Wednesday, the bonds were down more than 2 points on a 46 handle.

Market tone swung higher on Thursday as stock indices shook off the Federal Reserve’s decision to leave rates unchanged.

“It was up, everything was,” a trader said. “The HYG was up 44 cents, junk was up 48 cents.”

The benchmark 10-year Treasury note yield fell 10 basis points to 3.86% following a 9 bps drop on Wednesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.