Bausch bonds lead distressed gains; iHeart steady to weaker; Cumulus Media mostly quiet

By Cristal Cody

Tupelo, Miss., April 10 – Bonds mostly dove lower on Wednesday with several distressed names including Altice France Holding Restricted Group, DISH DBS Corp., Level 3 Financing, Inc. and Michaels Cos, Inc. down 1 point or more, sources said.

One of the few gainers were bonds from Bausch Health Cos. Inc., which traded around ½ point to 3 points higher, market sources said.

Bausch’s 4 7/8% senior secured notes due 2028 (Caa1/CCC+/B) were up 3 points to 64½ bid and have climbed over 5 points this week.

iHeartCommunications, Inc.’s notes were mixed with the 8 3/8% senior notes due 2027 (Caa3/CCC+) steady at 56 bid on $11 million of volume, a source said.

Cumulus Media Inc.’s 6¾% senior secured first-lien notes due 2026 (Caa1/CC) have been thinly traded in April and were last seen around 59 bid, a source said.

Cumulus Media reported on Wednesday it extended the expiration of a distressed exchange offer for the 2026 notes a third time.

The radio space has been pressured this year with already one default in January.

“These companies that are consumer-related, as well as have higher leverage, are struggling in this environment,” Michael Kupinski, senior research analyst at Noble Capital Markets, Inc., told Prospect News on Wednesday. “By this time, investors had anticipated the Fed was going to give some rate reduction action.”

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