Spirit Airlines on tap; cruise lines in focus; Genworth trades up on buyout rumor; Golden Nugget gains

By Paul A. Harris and Abigail W. Adams

Portland, Me., Aug. 31 – The domestic high-yield primary market proved it was still open for business in the run up to the Labor Day holiday and announced a new deal.

Spirit Airlines, Inc. launched a brief roadshow for a $600 million offering of five-year first-lien senior secured notes (Fitch: BB+) backed by its customer loyalty program.

There is speculation that in the return from Labor Day Delta Airlines will tap the market with a secured deal backed by its frequent flyer program.

Meanwhile, the secondary space was flat on Monday with trading volume light as accounts focused on end-of-month cleanup, sources said.

Cruise lines again dominated the tape with many of Carnival Corp.’s and Royal Caribbean Cruises Ltd.’s issues continuing their upward momentum.

Carnival Corp.’s 9 7/8% senior secured second-priority notes due 2027 (Ba1/BB+), which were struggling below par as recently as last week, were trading with a premium during Monday’s session.

Genworth Mortgage Holdings, Inc.’s 6½% senior notes due 2025 (Ba3/BB-) were on the rise in active trading on speculation the long-planned acquisition of the company will soon be completed.

Golden Nugget Inc.’s 8¾% senior notes due 2025 were also on the rise in above average trading volume.

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