Rite Aid notes remain soft, retailer’s CDS spreads tighten on week; Bausch paper lower

By Cristal Cody

Tupelo, Miss., Dec. 22 – Rite Aid Corp.’s paper remained soft on Thursday, a day after posting weak third-quarter results.

Rite Aid’s 8% senior secured notes due 2026 (B3/CCC-/B) were down ¾ point at 54¾ bid following an issuer upgrade from Fitch Ratings on the completion of the retailer’s tender offer for its 7½% issue, a source said.

On Wednesday, Rite Aid’s 7½% senior secured notes due 2025 (B3/CCC-/B) were quoted off ¾ point at 69½ bid after the retailer reported lower third-quarter revenue and wider quarterly losses.

Markets turned soft on Thursday as activity thins ahead of the holidays and year-end.

Volatility was back up.

The CBOE Volatility index climbed about 9% to $21.87.

Weekly economic data was stronger. The Federal Reserve Bank of New York said Thursday its Weekly Economic index rose to a preliminary estimate of 1.19% for the week ended Dec. 17 from 0.72% in the prior week on a rise in retail sales, consumer confidence and fuel sales, among other factors.

In other distressed paper, Bausch Health Cos. Inc.’s 8½% notes due 2027 (Ca/CCC/CC) gave back 1 point to trade at 52¾ bid on Thursday, a source said.

The bonds have softened about 1¾ points from the prior week.

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