MultiPlan upsizes; secondary junk ‘in gridlock’; American Axle struggles; Southwest hovers

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 17 – The primary junk bond market was less active in terms of issuers as a single upsized domestic deal cleared the market on Tuesday.

Meanwhile, it was another weak day in the secondary space although the lack of liquidity in the market prevented major price movements, sources said.

While there was some selling activity taking place, it did little to drag down prices.

“Markets in the street are locked; there may be bids or offers but no trades, the market’s gridlocked,” a source said.

Outside of new and recent issues, there was little activity taking place.

American Axle & Manufacturing, Inc.’s 5% senior notes due 2029 (B2/B+) were struggling in the aftermarket with the notes below par.

While Southwestern Energy Co.’s 5 3/8% senior notes due 2030 (Ba3/BB-/BB) were trading in a tight range throughout Tuesday’s session, they were at a premium to their issue price.

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