AMC slips after surprise deal; Diamond Sports mixed following downgrade; Talen weakens

By Cristal Cody

Tupelo, Miss., March 15 – AMC Entertainment Holdings, Inc.’s notes fell about 1/8 point to over 2 points on Tuesday following the theater owner’s surprise announcement it had ventured into the gold and mining space.

“Don’t know what to think about it,” one trader said. “It doesn’t make any sense. The 10% traded down.”

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) dropped 1 point to 85 7/8 bid in early trading and headed out down 7/8 point to 86 bid.

The issue saw $17.5 million of secondary volume.

Diamond Sports Group LLC’s notes were flat to about ½ point softer with the secured notes down ½ point after a downgrade from S&P Global Ratings.

Diamond Sports’ 5 3/8% second-lien secured notes due 2026 (Caa3/D) fell about ½ point to 40 bid, a market source said.

Also Tuesday, Talen Energy Supply LLC’s 10½% senior notes due 2026 (Caa2/CCC/CCC) declined nearly 3½ points.

The company’s credit default swaps have widened over 1,000 basis points in the past three weeks.

“If it’s widening, it’s going to be more expensive to insure to get more credit protection,” a source noted. “The unsecureds are trading at 30 cents on the dollar.”

Talen’s 10½% senior notes due 2026 (Caa2/CCC/CCC) declined nearly 3½ points on Tuesday to 34 bid.

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