Secondary downtrend continues; Royal Caribbean sinks further, Change Healthcare active

By Paul A. Harris and Abigail W. Adams

Portland, Me., Sept. 26 – The dollar-denominated new-issue junk-bond market remained quiet on Monday as volatility continued to rock the global capital markets, and the yield of the 10-year Treasury spiked by 20 basis points to 3.9%, the highest it has been in well over a decade, sources said

The euro-denominated primary market generated news on Monday, however.

Villa Dutch Bidco kicked off a €425 million offering of seven-year senior secured notes (B2/B) backing Bain Capital's acquisition of a majority stake in House of HR.

And Verisure Holding AB started a roadshow for a €500 million offering of five-year senior secured notes (B1/B). Marketing of the debt refinancing deal is set to run through Wednesday.

Meanwhile, the pain in the secondary space continued on Monday..

New and recent issues continued to see heavy volume with Royal Caribbean Cruises Ltd.’s recently priced tranches sinking further below par.

Citrix Systems Inc./Tibco Software Inc.’s 6½% senior secured notes due 2029 (B2/B) were active although with little movement in price as the notes hovered around their deeply discounted issue price.

Change Healthcare Holdings, LLC’s 5¾% senior notes due 2025 (Caa1/B-) saw heavy volume but little movement in price after last week’s court win that will allow UnitedHealth Group’s acquisition of the company to move forward.

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