Credit Focus

Community Health have their current debt swap expiring on February 20th, with another kicking off addressing bonds due in 2021. The offering of $1.46bn would give the giant hospital chain more time to heal its balance sheet. CEO Wayne Smith recently said that debt should not a burden for the firm in 2020 and sorting out operating issues is key. The new notes received a B- rating from S&P Global Ratings.

Intelsat bonds hit record lows on 30th January with their 9.5% bond due 2023 falling to a low of 43 cents on the dollar, down from 56 cents the previous day. Fears that Intelsat are to receive far less than expected when the FCC auctions off the C-ban spectrum (the spectrum company uses for its video and radio services) later this month have sent both stock and bond prices falling.

QVC recently issued international bonds with a 4.75% coupon due in 2027, raising $575m. The net proceeds from the offering are expected to be used to repay a portion of their borrowings. Qurate Retail Group have also recently opened a new fulfilment centre in Bethlehem, PA. The new site falls under the group’s optimization plan designed to reduce delivery times by two days, increase package consolidation and reduce shipping costs.

Rumours of L Brands preparing to sell Victoria’s Secret and perhaps Bath & Body Works have emerged recently. The lingerie brand’s sales have been shrinking for a while, with operating profits falling close to nil. An obstacle to these exits is a heavy debt load, which stands at just under $5.5bn worth of long-term liabilities. L Brands share price has risen 25% in the past 30 days given this news.

Multinational telecoms and mass media company, Altice, recently issued international bonds with a 4% coupon due in 2028, raising €500m. In other news Altice have recently confirmed that they have submitted a bid to buy Israeli operator Partner Communications – this would be the first major merger in Israel’s telecom sector.