Sinclair active, comes in; Albertsons lags; oil patch under pressure; Diamond Offshore tanks

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 5 – The domestic high-yield primary market was quiet on Monday as volatility roiled capital markets amid escalating trade war tensions.

New issue activity will most likely be sidelined until a modicum of stability returns to the markets, sources said.

The secondary space was weak on Monday as the sell-off in equities spilled over to high yields with investors seeking out safe havens.

Selling activity was driving the whole market down with the oil patch, in particular, under pressure, sources said.

California Resources Corp.’s bellwether 8% senior notes due 2022, Chesapeake Energy Corp.’s 8% senior notes due 2025 and Antero Resources Corp.’s 5 3/8% senior notes due 2021 were all trading off on Monday.

Diamond Offshore Drilling Inc.’s 7 7/8% senior notes 2025 also sank due to general weakness in the sector and a disappointing second quarter earnings report.

Sinclair Broadcast Group Inc.’s two tranches of senior notes remained active in the secondary space with the notes coming in slightly.

Albertsons’ recently priced 5 7/8% senior notes due 2028 (B3/BB-) were also trading down with the notes lagging their issue price.

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