Lithia, Encompass, Allegiant price; Acadia, Spirit AeroSystems at a premium; fallen angels active

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 30 – The junk bond primary market was active again on Wednesday with Lithia Motors, Inc., Encompass Health Corp. and Allegiant Travel Co. pricing deals as the secondary space continued to firm following last week’s sell-off.

However, while the secondary market was strong at the start of the session, it grew softer as the session progressed, a source said.

New issues and fallen angels remained the focus of trading activity.

Spirit AeroSystems, Inc.’s newly priced 5½% senior secured first-lien notes due 2025 (Ba3/BB-) dominated the tape with the notes trading with a healthy premium.

While less active, Acadia Healthcare Co., Inc.’s 5% senior notes due 2029 (B3/B-) traded to a higher level with the notes rising to a 101-handle.

Outside of new issues, several fallen angels were active as the notes moved from investment-grade to high-yield hands.

Howmet Aerospace Inc.’s, Ovintiv Inc.’s and Nordstrom Inc.’s senior notes have been major volume movers over the past few sessions.

While the notes were previously trading sideways, Nordstrom’s senior notes were losing ground on Wednesday.

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