Secondary rebounds; American Airlines in focus; Sprint gains; energy sector improves

By Paul A. Harris and Abigail W. Adams

Portland, Me., March 10 – As the stock market whipsawed its way through the Tuesday session, with the S&P 500 closing almost 5% higher on the day, the high-yield primary market remained shuttered.

One deal is thought to still be in the market.

Del Monte Foods Inc. is seeking to place $575 million of seven-year senior secured notes (Caa2/CCC+), sources say.

However, for the time being the deal has gone quiet.

Meanwhile, the secondary space firmed on Tuesday with equities and oil futures rebounding.

The overall market was up 1 to 2 points with the energy sector gaining upwards of 10 points, a market source said.

American Airlines Group Inc.’s senior notes were rebounding alongside the broader market after the company rolled out a variety of cost-saving measures to combat the impact of the coronavirus.

Sprint Corp.’s senior notes were also posting gains in high-volume activity on Tuesday. The notes were among the few to hold up during Monday’s sell-off.

The energy sector was also staging a minor rebound as crude oil futures recovered.

However, while some names were up as much as 9 or 10 points, they were still firmly below their previous levels with widespread defaults in the sector expected.

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