Enviva bonds hit 50s handle; Staples extends rally; Qurate Retail mixed; Glatfelter down

By Cristal Cody

Tupelo, Miss., Nov. 30 – Enviva Partners, LP’s 6½% senior notes due 2026 (Caa2/CC/CC) broke a 50 bid handle on Thursday in heavy trading after the issue rallied over 3 points, a source said.

The bonds have recovered some of the losses from earlier in the month when the issue sank more than 30 points to a 30s handle.

Staples Inc.’s 10¾% senior notes due 2027 (Caa2/CCC) climbed 2 7/8 points after picking up more than 1 point on Wednesday, while the company’s credit default swap spreads came in more than 500 basis points this week.

Qurate Retail Inc.’s paper was softer on Thursday, while its CDS spreads improved more than 100 bps this week.

Qurate Retail's 8¼% senior notes due 2030 (Caa2/CCC-) fell ½ point over the day.

Stock indices were mostly better with the Nasdaq the lone loser as Treasury yields climbed.

The CBOE Volatility index was down 0.46% at 12.92.

The iShares iBoxx High Yield Corporate Bond ETF shed 14 cents, or 0.18%, to $75.71.

Elsewhere, Glatfelter Corp.’s CDS spreads were the softest among corporates over the past week and crept closer to 1,000 bps.

Glatfelter’s 4¾% senior notes due 2029 (Caa1/CCC) went out flat on the day and about 1 point lower on the week.

Global median CDS spreads for Caa-rated corporates was 647 bps for the past week ended Wednesday, while B issuers was 325 bps, according to a Moody’s Investors Service report.

In North America, the median CDS spread for Caa issuers was 1,018 bps, with B issuers at 283 bps.

Enviva notes up

Enviva Partners’ 6½% senior notes due 2026 (Caa2/CC/CC) jumped 3¼ points to a quote of 50½ bid on Thursday, a source reported.

Secondary supply was strong on $16.8 million of notes traded.

The bonds were yielding 45.2%.

On Nov. 9, Enviva’s 6½% notes plunged 31¾ points to hit 32½ bid on more than $60 million of bonds traded after the Bethesda, Md.-based industrial wood pellets manufacturer posted third-quarter losses, a shake-up in leadership and withdrew its guidance for the year.

Staples continues climb

Staples’ 10¾% senior notes due 2027 (Caa2/CCC) climbed 2 7/8 points to 65 1/8 bid on nearly $15 million of volume in the secondary market on Thursday, a source said.

The bonds went out Wednesday more than 1 point better at 62 1/8 bid and climbed to 64 bid out of the gate on Thursday.

The issue traded with a 58 bid handle in September.

Staples’ CDS spreads tightened 512 bps over the past week ended Wednesday to 2,354 bps, according to a Moody’s report.

The private company on Tuesday reported to investors and analysts that third-quarter revenue was flat, while EBITDA increased 10%, a source said.

The Framingham, Mass.-based office products retail company is owned by private equity firm Sycamore Partners.

Qurate notes down

Qurate Retail's 8¼% senior notes due 2030 (Caa2/CCC-) fell ½ point on Thursday to 40½ bid on about $4 million of activity, a source reported.

The company formerly known as Liberty Interactive LLC saw stronger CDS spreads this week.

Liberty Interactive’s CDS spreads firmed 140 bps over the past week ended Wednesday to 2,483 bps, according to a Moody’s report.

Qurate Retail’s stock (Nasdaq: QRTEA) slid 18.35% to 77 cents on Thursday.

The West Chester, Pa.-based home shopping network company is the parent of QVC Inc.

Glatfelter bonds flat

Glatfelter’s 4¾% senior notes due 2029 (Caa1/CCC) went out flat at 61½ bid in light trading on Thursday, according to a market source.

The notes were down about 1 point on the week and about 4 points lower from October.

Meanwhile, Glatfelter’s CDS spreads widened 251 bps over the past week ended Wednesday to 975 bps, according to a Moody’s report.

Glatfelter is a Charlotte, N.C.-based supplier of engineered materials used across sectors.

Distressed index higher

S&P U.S. High Yield Corporate Distressed Bond index one-day total returns improved midweek to 0.61%, compared to 0.3% on Tuesday and 0.38% at the week’s start.

Month-to-date total returns rose to 3.93% on Wednesday from 3.3% on Tuesday and 2.99% on Monday.

Year-to-date distressed total returns increased to 14.85% from 14.15% in the prior session and 13.81% at the start of the week.

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