Distressed trading thins; Carvana notes mixed; KeyCorp paper soft; Qurate Retail flat

By Cristal Cody

Tupelo, Miss., March 22 – Carvana Co.’s distressed paper saw light trading on Wednesday after the company launched an exchange offer for five series of its senior notes.

Carvana’s 5 5/8% senior notes due 2025 (Caa2/CCC) were seen up about 10 points at 63 bid in light trading by the close on Wednesday, a source said.

KeyCorp’s 5% perpetual securities remained soft on a 70s handle on Wednesday after the issue dropped about 9 points last week with concern about the issuer’s upcoming earnings report growing.

The securities traded with a handle in the 90s at the start of March.

KeyCorp usually confirms its first-quarter earnings date around Feb. 7 but by March 20, still had yet to confirm its reporting date, Christine Short of Wall Street Horizon said in a note.

With all the “regional banking worries left and right, this is not a bullish look,” Short said.

Home shopping network owner Qurate Retail Inc.’s 8¼% notes due 2030 (Caa2/CCC-) were mostly flat to about ¼ point softer at the 35½ bid area in light trading.

The notes shed about 1 point on Tuesday after Moody’s Investors Service downgraded the notes and changed the company’s outlook to stable from negative.

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