Enviva bonds continue revival; DISH notes rack up gains; iHeartCommunications improves

By Cristal Cody

Tupelo, Miss., Nov. 14 – Enviva Partners, LP’s newly distressed 6½% senior notes due 2026 (Caa2/CC/CC) took back 9 points in heavy secondary trading that put it among the most active and higher-rated junk paper on Tuesday.

Enviva’s notes climbed over 6 points on Monday.

Other than DISH Network Corp.’s distressed 7¾% senior notes due 2026 (Caa2/B-), Enviva’s issue was the only Caa2-rated paper leading junk secondary supply over the session, a source said.

DISH Network’s paper also made gains on strong trading volume on Tuesday.

The 7¾% senior notes due 2026 (Caa2/B-) were up 1¼ points on more than $17 million of paper traded.

Stocks shot higher on Tuesday, while Treasury yields slid 12 basis points on the long end to 24 bps on the short end following the release of October inflation data.

The Labor Department reported the Consumer Price Index rose 3.2% year over year in October, down from 3.7% in the prior month and below market analysts’ consensus forecast of 3.3%.

Tuesday’s market swings were “100%” due to the CPI report, a desk source said.

“I looked yesterday and saw the U.S. troops were attacked – the market didn’t move at all,” the source noted. “And today after the CPI change, it’s up just over 2 points on the 30-year. The 10-year has moved about 1½ points.”

The S&P 500 index closed 1.91% higher, and the Nasdaq rallied 2.37% by the finish.

The iShares iBoxx High Yield Corporate Bond ETF jumped 75 cents, or 1.01%, to $74.74.

Volatility decreased. The CBOE Volatility index declined 4.07% to 14.16.

Meanwhile, the trailing 12 months’ U.S. high-yield default rate rose to 3.1% in October, its highest level since April 2021, Fitch Ratings reported.

In other corporate bonds, iHeartCommunications, Inc.’s notes traded over 1 point better in active supply on Tuesday.

The 8 3/8% senior notes due 2027 (Caa1/CCC+) rose over 2 points during the session.

Enviva moves higher

Enviva Partners’ 6½% senior notes due 2026 (Caa2/CC/CC) climbed 9 points to 53 bid and a 41.37% yield on $28.44 million of volume on Tuesday, a source said.

The bonds a bit later were seen up 8½ points at 52½ bid and a 41.94% yield on $29.44 million of secondary trading.

On Monday, the notes added over 6 points and recovered 4¼ points on Friday to a quote of 36¾ bid.

The company’s bonds sank more than 31 points to a 32 bid handle on Thursday after Enviva reported heavy third-quarter losses and doubt about its ability to continue as a going concern.

The Bethesda, Md.-based industrial wood pellets manufacturer’s stock (NYSE: EVA) fell 5.01% to $1.31. Shares climbed nearly 50% on Monday.

DISH bonds up

DISH DBS Corp.’s 7¾% senior notes due 2026 (Caa2/B-) were up 1¼ points at 62¼ bid and a 29.32% yield on Tuesday on $17.78 million of trading, a source said.

The bonds were up 1 point from the same session a week ago when the issue was quoted at 61¼ bid.

DISH’s bonds fell more than 10 points at the start of the prior week.

The 5 1/8% senior notes due 2029 (Caa2/B-) rose just under ½ point to 48 bid and a 21.7% yield on Tuesday on $11.21 million of volume.

The issue was about ½ point better from the same session last week.

DISH’s bonds were volatile over the prior week after the Englewood, Colo.-based satellite cable operator reported third-quarter losses.

iHeartMedia stronger

iHeartCommunications’ 8 3/8% senior notes due 2027 (Caa1/CCC+) rose over 2 points to 63 bid by the time the session wrapped, a source said Tuesday.

Trading totaled $11.1 million.

On Monday, the bonds were modestly softer to unchanged.

iHeartCommunications’ 6 3/8% senior secured notes due 2026 (B1/B+) climbed 1¾ points on Tuesday to head out at 81¾ bid on $7 million of secondary action.

The notes fell 1 1/8 points in the prior session.

San Antonio-based parent media broadcasting company iHeartMedia, Inc. on Thursday reported third-quarter losses improved from a year ago.

Distressed index positive

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns kicked the week off at 0.07% on Monday.

Returns were down from 0.34% on Friday but improved from minus 0.21% in the same session last week.

Month-to-date total returns rose on Monday to 0.94% versus 0.86% on Friday and 0.92% in the Nov. 6 session.

Year-to-date distressed total returns improved to 11.54% from 11.46% ahead of the weekend and 11.52% in the week-ago session.

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