Owens & Minor in demand; rate sensitive names under pressure; Carnival down

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 22 – High-yield new-issue news continued to come in a slow trickle on Tuesday with one deal on the forward calendar.

Owens & Minor Inc. is slated to price its $500 million offering of eight-year senior notes (B2/B/BB-) on Wednesday with the deal heard to be well oversubscribed.

Meanwhile, the secondary space was mixed on Tuesday with pockets of strength and pockets of weakness.

Rate-sensitive names remained under pressure as the 10-year Treasury yield continued its ascent and settled near the high of the day at 2.385%.

Charter subsidiary CCO Holdings LLC’s 4½% senior notes due 2032 (B1/BB-) and DaVita Inc.’s 3¾% senior notes due 2031 (Ba3/B+) continued their downward trend in active trading.

Occidental Petroleum Corp.’s 3½% senior notes due 2029 (Ba2/BB+) also underperformed the market with the downward trend in the notes more a result of rate concerns than oil futures, sources said.

Carnival Corp.’s 6% senior notes due 2029 (B2/B) were again lower in active trading with the recent rally in oil futures again pressuring the notes.

Meanwhile, outflows continued in the space with ETFs seeing a record daily outflow of $2.26 billion during Monday’s session.

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