Staples, Michaels bonds trade up on day, lower on week; Lumen one of week’s top gainers

By Cristal Cody

Tupelo, Miss., Sept. 22 – Distressed corporate paper was among some of the week’s biggest gainers and losers, though secondary trading slowed on Friday.

Staples Inc.’s bonds improved on Friday but were ending the week nearly 2 points lower following a downgrade from S&P Global Ratings.

Staples’ 10¾% senior notes due 2027 (Caa2/CCC) were up over ¼ point with a 58 bid handle on $4.5 million of notes traded, up from Thursday when the issue fell ½ point to 57½ bid on $1.8 million of supply, a source said.

Michaels Cos., Inc.’s 7 7/8% senior notes due 2029 (Caa2/CCC) also recovered ½ point on Friday to a quote of 67 bid but were going out around 2 points lower on the week.

Trading was light on $1 million of secondary volume, a source said.

Meanwhile, Lumen Technologies, Inc.’s paper softened on Friday but was one of the week’s biggest gainers as the company faces numerous issues, including a class-action lawsuit filed Monday, market sources reported.

The issuer’s 4% senior secured notes due 2027 (Caa2/B) fell ¼ point to 67¼ bid in light trading of under $2 million on Friday.

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