Carvana sinks following third-quarter report; Prog bonds gain; Rite Aid up on tender offer

By Cristal Cody

Tupelo, Miss., Nov. 4 – Carvana Co.’s paper slid about 5¼ points to 7 points on Friday with the issuer’s bonds trading in the 30s and 40s after the online car retailer reported third-quarter profit plunged more than 30%.

Secondary supply hit about $89 million on Friday with Carvana's 10¼% senior notes due 2030 (Caa2/CCC) among the most active junk and distressed names seen trading, a source said.

Prog Holdings Inc.’s bonds were making somewhat of a comeback in the secondary market late in the prior week and the current week, though still off the year’s starting point.

The financial markets shook off the soft tone seen since the Federal Reserve’s interest rate hike on Wednesday with stock indices all more than 1% higher on Friday.

The iShares iBoxx High Yield Corporate Bond ETF rose 50 cents, or 0.69%, to $72.90.

The West Texas Intermediate crude oil benchmark futures for December delivery settled up $4.44 at $92.61 a barrel.

Rite Aid Corp.’s 7½% senior secured notes due 2025 (B3/CCC-/BB-) jumped 3½ points over the day in busy trading that ranked the issue as one of the most active distressed names in the secondary market.

The drugstore chain on Thursday announced a cash tender offer to purchase up to $200 million of the notes.

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